Lotto PGF
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LottoPGF functions as a capital formation mechanism that allows anyone to launch customizable, fully onchain “Lottos” to fund causes they care about. These lotteries are secured on Ethereum, featuring verifiable randomness and unbiased winner selection. By bringing the traditional lottery system onchain, LottoPGF aims to address the transparency, fairness, and verifiability challenges commonly found in conventional lotteries.
OttoDAO, the team behind LottoPGF, has already launched early versions of the protocol. As of October 2024, LottoPGF has attracted over 16,000 unique players who have played more than 40,000 tickets across five different blockchain networks.
In the web3 public goods funding space, where most mechanisms focus on resource allocation, LottoP- GF shifts attention to capital formation. It does this by incentivizing retail donations, reducing reliance on large sponsors, and enhancing neutrality. This approach aims to make public goods funding more accessible, engaging, and community-driven.
This mechanism is well-suited for communities with strong commitment and vision, groups wanting to incentivize donations, charities, and emerging nations like network states or pop-up cities, as it enhances transparency and community involvement.
LottoPGF allows anyone to create customizable, permissionless lotteries to fund public goods. Powered by verifiable random functions (VRFs), which generate cryptographic randomness for fairness, lotteries can be single or recurring, with flexible options for fund disbursement and prize redistribution.
LottoPGF rounds begin with configuration options such as the ticket price, token (like an ERC-20), and determining how funds are split between the prize pool and the public good. Ticket buyers can choose to support one or multiple causes. Organizers can also adjust the odds of winning and customize the frequency of draws, whether recurring or a single round. In single-round lotteries, if no winner is found, the prize pool is evenly distributed among all participants.
The way funds are allocated can vary, from direct support to creating a matching pool. Depending on the setup, disbursements are either from direct support or milestone-based. The entire system is permissionless, meaning anyone can deploy the protocol without needing approval.
LottoPGF shifts the focus from traditional capital allocation to capital formation, allowing communities to raise funds for their LootPGF campaigns.
It can be used in combination with capital allocation mechanisms like Quadratic Funding (QF) or RetroPGF, replacing the need for a a sponsor.
The onchain lottery format introduces a fun, dynamic element for communities, making fundraising more interactive and exciting for participants.