INT: Decentralized Autonomous Lottery

The lottery industry grows by 3.1% each year, surpassing $350 billion. Rollbit stands out as one of the most successful examples of decentralized gambling in the cryptocurrency space. The Internet Token ($INT) protocol introduced a novel decentralized lottery system featuring weekly draws, providing governance rights to INT holders. This model has gained considerable traction, drawing weekly prize pools over $185,000. The IFT protocol employs a mechanism that burns 80% of the INT fees weekly, contributing to these significant prize pools. Ticket sales have reached new heights, and trading volumes have rebounded, with the protocol’s treasury accumulating more than 25 ETH. The IFTInfinity Collection (IFT), a set of 10,000 NFTs, 20% of which are distributed weekly by the DAO, offers users the option to either retain or destroy their tokens. INT’s approach could transform the gambling sector by establishing decentralized autonomous lotteries. Despite being in its nascent stages, the INT products have seen substantial participation, with significant weekly trading volumes.

Every year, humans spend more than $350 billion on lottery tickets. If you’re involved in cryptocurrencies, there’s a good chance you’re what might be called a “fallen gambler.” This isn’t rare, as the rush of gambling taps into our deep-seated craving for excitement through risk.

The lottery market is projected to grow annually by 3.1%, exceeding $400 billion by 2028.

Decentralized gambling represents one of cryptocurrency’s most elusive goals. Despite many attempts at innovation in this space, most have not succeeded. Given that the crypto industry itself mirrors a vast casino, why then, one might ask, is there a need for a niche market within it? Rollbit stands out as one of the area’s notable successes by incorporating traditional casino business models into the crypto world. Imagine a scenario where gambling is decentralized right at the application layer, beginning with the establishment of a self-sustaining and self-governing lottery system.

This is where the Internet Token ($INT) comes into play.

About Lottery and Luck

Humans have been gamblers for millennia! The oldest known lottery records date back to China’s Han Dynasty around 200 BC.

Yet, the earliest documented instance of lottery sales originates from ancient Rome, introduced by Emperor Augustus. In Rome, lotteries functioned as a form of taxation, with the proceeds aimed at funding the repairs of the city.

Historically, the structure of lotteries has been remarkably consistent with today’s practices: typically managed by governmental bodies, which allocate approximately 57% of the revenue from lottery sales to prizes, with few deviations. However, one might wonder if there are alternative models. Is it feasible for a lottery system to operate autonomously and in a decentralized manner?

Internet Token ($INT)

The Internet Token ($INT) debuted on the Base platform on March 22, uniquely opting to forgo a traditional website or white paper. Instead, it shares all necessary details directly through its smart contract, which can be accessed here:

https://basescan.org/address/0xdFd0bbFC8c188E923Bfb4fA5132C725d7D9c1988#code

INT is a digital currency that has pioneered a decentralized lottery system, enabling participants to win prizes in INT, ETH, and various NFTs. This lottery is held weekly and operates perpetually. The protocol cleverly utilizes its liquidity to form a marketplace for tickets, where users can trade INT for lottery entries.

• Tickets are traded in the INT-WETH Uni V3 liquidity pool.

• Purchasing INT directly allows users to receive a lottery ticket (Ticket NFT).

• Each ticket costs $5, incurred through a 1% transaction fee on every $500 traded.

Moreover, owning INT confers governance rights within the project via the INT DAO. The project has garnered substantial traction since its launch, not least because of the involvement of GMX dev X, which has led to significant investments from the GMX OG community.

How does the INT lottery work?

1 There is a 1% fee for each INT transaction.

2 One NFT ticket will be minted for every $5 fee paid.

3 Every Friday, the protocol generates a verifiable random number to select the winner of the prize via the oracle provider API3.

The owner of a Ticket NFT with a matching ID will receive a portion of the fees accumulated during the week: 80% of the accumulated fees in ETH and 20% of the accumulated fees in INT.

4 Additionally, the protocol selects 100 NFT winners (“IFTs”) every week. This number is halved every five weeks until 2000 IFTs have been allocated out of a total of 10,000 IFTs. Any user can burn IFT to redeem 1/10,000 of the INT supply.

To accumulate tickets, users are incentivized to buy and sell INT multiple times, which is reflected in the token’s daily trading volume (which is the highest on Base).

Additionally, this protocol has an interesting combustion mechanism that helps achieve a positive flywheel.

Each week, after the draw, the remaining 80% of INT fees (only 20% is distributed as lottery prizes) is burned, reducing the supply of INT tokens.

The more users participating in the lottery, the more transactions and fees generated, and the higher the prizes. The higher the bonus, the more participation, which creates more fees to burn INT tokens, making them more valuable.

The ultimate flywheel is here and running autonomously.

Over the past three weeks, this model has proven successful, with trading volumes and contributions increasing, as well as bonuses.

This week, the prize pool exceeded $185,000 ($140,000 ETH and $44,000 INT), with nearly $1 million in IFT (100 x $98,700) and over $175,000 INT (approximately $1.8 million or 0.18% of supply).

He is Kingblockchain and realized he won the weekly lottery; it feels good!

However, you don’t need to be a big whale to try your luck, as the winner of the 2nd INT Lottery only has 9 tickets!

Ticket sales hit an all-time high (ATH) with 33,000 tickets issued.

Volume is also picking up, reaching an average of $6.8 million last week, which is insane considering INT’s market cap ($17 million) and its novelty.

This all helps allow the protocol to accumulate over 25 ETH in its DAO vault.

INT token economics are defined as follows:

As part of tokenomics and another link to GMX, 10% of the INT token supply can be minted using GMX by burning the corresponding GMX.

This way users can bind (and destroy) their GMX to mint INT.

Notably, the deflationary token economics mechanism introduced by the protocol could prove to be a strong support for INT price, operating independently of market direction, making INT less correlated with other tokens.

Taken from Kalcrypto:

Another cool thing is that even if the protocol gains more attention and INT prices increase a lot, it will not affect the cost of obtaining a ticket for real lottery gamblers. The cost to buy a ticket is still $5 (or $10 if they don’t want to hold INT), and that won’t change no matter what price INT is trading at. In my opinion, this is a very important innovation that decouples lottery users from the price fluctuations of the INT token itself and makes the lottery permanently accessible to everyone.

About IFT

The definition of Infinity Collection (IFT) NFT can be found in the INT contract.

There are 10,000 IFTs in total.

20% of IFT (2000) will be distributed weekly by the DAO, starting at 100 per week and halved every 5 weeks (126 weeks in total).

As mentioned above, users can already decide whether to burn their NFTs at 1/10,000 of the INT supply or hold them for future use.

The DAO is already discussing whether to entrust IFT art to professional artists or whether to launch a small collection for OG holders.

Did someone say revenue sharing?

IFT has a time-based boost that gives older NFTs priority and more rewards:

The model proposed by INT is particularly interesting because it has the potential to redefine gambling. Creating a decentralized autonomous lottery is very powerful and could become one of the use cases for cryptocurrencies.

I believe we will see the same model expand to other industries. Rather than moving from centralized casinos to decentralized casinos, we will see more and more games decentralized at the application layer and able to run on their own.

Additionally, creating autonomous and sustainable gambling products can also serve as a legal shield for the industry’s agreements.

Although the INT product is still in its infancy, with only 3 lotteries so far, it presents a product with untapped potential given the likely target market.

Creating more games leveraging the same system could add a flywheel effect to INT token economics and create the first autonomous casino in DeFi.

The development of protocols like INT should be celebrated as realizing the ethos of crypto, which is to decentralize every sector and disrupt existing institutions, replacing them with autonomously operating algorithms that cannot be tampered with.

For this reason, INT makes more sense to me, and hopefully it will expand to more applications/departments soon.

I have never been a lucky person.

I always like to work hard to get what I want.

However, I’m going for that decentralized autonomous lottery jackpot!

This is not a sponsored post, I hold INT and I like the protocol.

My personal strategy for getting some tickets was swing trading, however, the price has been quite vertical.

I’ve noticed that selling before the draw is a good strategy (usually on a Friday) because most people will do that, then buy back and get the ticket, and the winner will likely sell.

I’ve seen others (you can check purchases on Dexscreener) doing full mining, buying and selling INT to mining tickets - so the volume of transactions per day is huge.

For example, this week, someone deployed a bot to create a staggering number of tickets, approximately 11,000 in total, at a cost of over $100,000!

While they didn’t win the jackpot, they did win over 10 IFT, which was probably enough to cover their mining costs.

This is their address:

https://basescan.org/address/0x1B575b022AF4ABE78c1D984dF2DF6E8e14Ca7261#tokentxns

Anyway, these are just some ideas that should definitely not be considered financial advice because I am a very bad trader, otherwise I wouldn’t be writing a post here.

Disclaimer：

1. This article is reprinted from [Marsbit], All copyrights belong to the original author [FRANCESCO，Kate, 火星财经]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
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