Introducing the ICON ($ICX) Risk-free Lottery


Jan 22, 2020

4 min read

Introducing the ICON ($ICX) Risk-free Lottery

Dear Iconist,

Today we’re delighted to introduce our 1st DApp idea for the ICON ecosystem, a risk-free staking lottery.

What is this about?

As you may already be aware, ICON allows you to stake your token and earn additional rewards. The ICON protocol is currently offering ~20% annual rewards, and this is why it‘s an exciting crypto asset for everyone looking for high fixed yield.

To allow everyone to benefit from this model without having to lock a big amount of money, we decided to create a risk-free staking lottery.

ICX token holders will be able to join a pool of ICX holders and have a chance to earn the entire reward once a week.

Why a lottery as a 1st Dapp?

Global gambling is a massive industry with €374bn revenue and 13% of it, i.e. almost €45bn, made online. In a traditional lottery, people buy lottery tickets, and the money is then sent to an institution, and winners are chosen randomly. One person gets lots of money, and everyone else loses.

In this model, one winner gets all the staking rewards from the smart contract, and others can claim back their ICX when they want to stop participating.

This is why at Stakin, we wanted to launch this 1st DApp as we think it can attract many people & newcomers to the ICON blockchain.

How is this going to work?

The risk-free staking lottery will be a game based on the ICON blockchain and inspired by PoolTogether, a revolutionary concept built on top of the Ethereum blockchain.

Rather than using lending, we decided to apply this use case to the staking mechanism inside the ICON blockchain.

In this model, to participate in the lottery, people will need to send ICX to the lottery smart contract. The smart contract will then vote for a P-Rep, and one lucky winner will earn the entire staking revenue.

In detail, once you’ve sent the ICX to the smart contract, you will receive the same amount of tickets. For example, if you decide to send 100 ICX to the smart contract, you will receive 100 ICX lottery tickets.

Your chance to win will then become :

# of ICX lottery tickets / Total ICX balance of the smart contract

If there is, for example, a total of 10,000 ICX participating in the lottery, and you have 100 tickets, you will have a 1% chance of winning.

Every ICX sent to the smart contract will be then staked, and the entire staking rewards will be sent once a week [Every Seven term (one term c.24h)] to the lucky winner.

If you keep your ICX lottery tickets, you will be automatically enrolled in next week’s lottery.

In the other case, if you want to stop participating, you can simply send back your ICX lottery tickets to the smart contract. You will then automatically receive back your ICX tokens after the unstaking period. (~10 days)

To simplify the process, in the 1st time, people will be enrolled once a week, and staking rewards will be distributed randomly to one lucky winner weekly, every Sunday, after seven terms (1 term c.24h).

If for example, you buy some tickets on Wednesday afternoon, you’ll have to wait until the end of the week for your ICX to be used for staking and you will be enrolled at the start of the next draws until you decide to claim back your ICX to the smart contract.

Safety, game fairness & transparency

By organizing such DApp, there are some aspects that should be taken to ensure the safety of the contract but also the game fairness and transparency.

To ensure security, once the code is going to be created from our side, we are going to create a Bug bounty program, but we will also work with a 3rd party to audit our code.

Then another aspect of the game will be to assure our random selection model works well and guarantee the fairness of the game.

In order to do the draw, we will implement a Random functionality to our smart contract that generates random numbers.

Last but not least, we will allow you to track everything for more transparency. In addition, to the blockchain explorer, we will also add a Transparency page on our website, so you’ll be able to check every ICX staking lottery tickets which have been sold, chances of winning & the price distribution.

Other features

In addition to the lottery, we will also add supplementary features on top of it.

First, we would like to give the ability to our users to create their lottery with a privacy feature in case you want to organize one lottery between your friends or with your community.

We would like to allow everyone to integrate a lottery for your community without having to code everything from scratch.

Finally, one of the last feature we would like to integrate is a functionality allowing to regroup the different tickets with your friends or from different addresses in order to maximize your chances.

If you have any other ideas shoot us a message on our Telegram.

How do we plan to do it?

In order to develop such project, we’re trying to receive a grant from VELIC Financial.

If you want to know more about our candidature, check out this link & let us know what you think under this tweet.

Get to know more about ICON

DISCLAIMER: This is not financial advice. Staking and cryptocurrencies investment involves a high degree of risk and there is always the possibility of loss, including the loss of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some PoS protocols. We advise you to DYOR before choosing a validator.

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