Firelotto blockhaian crypto lottery

February 11, 2018

Firelotto blockhaian crypto lottery

INTRODUCTION

A lottery game built on the Ethereum blockchain will be a major innovation in the global
lottery industry. The lottery industry holds a 29% share of the global gambling revenue
[1], and is facing challenges due to the growth of the digital economy. Worldwide
demand for more transparent, fair services has grown concurrent with the advance of
technologies that enable the change. The distributed, decentralized nature of
blockchain technology offers tremendous opportunities for financial technology
innovation, and, similarly, for gaming industry modernization.
A gaming system built based on the use of the Ethereum blockchain would operate with
a high degree of autonomy, and its data and records would be cryptographically stored
in a public, decentralized blockchain. Available online and borderless, such a system
can resolve some challenges of traditional lotteries.
The proposed lottery will employ the random number generation (RNG) method, which
is secure and fair and prevents manipulation and fraud. This project implements a
completely secure RNG method based on the current version of the Bitcoin
decentralized protocol.

Global Lottery Industry

The global lottery industry grew from $ 187.1 billion in
2004 to $ 294.3 billion in 2016, representing a compound
annual growth rate (CAGR) of 4.3% per year. In 12 years
from 2004 to 2016, lottery sales have declined only once,
evidencing the stability of the business. More than 64% of
global lottery sales come from Europe and North America
[2].
Concurrently, with growing penetration of the Internet
and mobile phone adoption, online and mobile lotteries
are growing everywhere. The total revenue of mobile
lotteries in 2016 is estimated to be 43 billion, while 44% of
the amount is generated in Europe and North America. The
pace of technology adoption can be even faster in the
developing markets.

Up until recently, most lottery operators were B2C. With the advent of online and
mobile lotteries, there are now more B2B companies offering online lottery platforms.

HOW THE BLOCK CHAIN FIRE LOTTO WORKS

We have built a completely transparent and fully decentralized platform for organizing
and conducting a lottery using the blockchain technology and ETH smart contracts for
collecting and distributing funds, drawing winning numbers in a random fashion, and
paying lottery tickets sales commission to token holders.
The prize pool of the Fire Lotto Lottery is formed from 70% of the funds collected from
ticket sales. The minimum size of a guaranteed jackpot is fixed-1000 ETH (~ USD
1,000,000) for the 6/45 lottery. [*] If nobody wins the main prize in a drawing, it will be
rolled over to the next drawing and increased. The jackpot will keep growing until it
finds its winner.
There will be prize categories with a different prize depending on how accurately
the player predicts lottery numbers. All categories starting from 2 will be calculated as
percentages of the prize pool. If several winners win the jackpot in one drawing, it will
be split between them.
We will offer two types of lotteries: instant lotteries and draw lotteries.
The Roger's Wheel instant lottery is a mix between the traditional wheel of fortune
and a slot machine. In this game, players can place bets ranging from 0,003 ETH (~ USD
2.00) to 1 ETH (~ USD 1,000.00) [*] and choose a payout rate from 2 to 20, which will be
used to multiply their winnings. Next, the player spins the wheel divided into 21 sectors
with different payout rates on them. If the wheel stops at the player's chosen rate, he
or she will instantly have the winnings (the bet multiplied by the payout rate)
transferred to their cryptocurrency wallet. The player can turn an unlimited number of

payout rate of 1 for two matching numbers, which means that players only win back
their bet. However, we should remember that there is a tax on gambling winnings,
which means that the player who guessed the two numbers will lose at least 30% of their
bet rather than win anything. In our lottery, the minimum payout rate for two matching
numbers is at least 1.6, which means that the player will get paid back the price of the
ticket plus half of its cost.

Fire Lotto token holders will have sales commission transferred to their
cryptocurrency wallets after the drawing.

The sales commission rate will be fixed in
the smart contract. Commission will be paid in ETH. Token holders will be free to use
their share of sales commission as they wish.

All processes and distribution operations in the system will be carried out based on the
mechanisms built into smart contracts, which will exclude the possibility of their being
influenced by the lottery organizers.

Everything will be done autonomously, honestly,
and transparently.

In order to substantiate what has been said, we will publish the full source code of the
Fire Lotto at the beginning of our initial coin offering (ICO) so that anyone can check it
and see that the system corresponds to its description in this paper.

WHY THE FIRE LOTTO WILL BE PLAYED ALL OVER THE WORLD

The initial guaranteed prize pool is over USD 1.1 million.

§ The amount of the prize pool can grow up to dozens of millions of dollars.

§ A record 70% of funds collected from ticket sales will be allocated to the prize
pool.

§ Neither winning numbers nor lottery tickets can be faked.

§ Distribution and payout procedures are transparent and supported by smart
contracts.

§ The lottery is based on the ETH blockchain. All the parameters of the lottery
are included in the program code, which will be open to anybody willing to
check it.

§ This lottery can not be banned. You only need Internet access and a
cryptocurrency wallet to play it.

§ A comfortable and user-friendly interface. A game that is played in one click.
A mobile version available.

§ At the date of the platform launch one ticket costs USD 2.00, a sum that
millions of players around the world are accustomed to.

§ There is no possibility of system abuse.
§ The Fire Lotto is anonymous.
§ Winnings of any size are paid out almost instantly.

§ Winnings are not taxed.

§ The fact that the lottery platform is decentralized means that the platform
will operate independently and autonomously as long as there are gambling
enthusiasts, the Internet, and cryptocurrency.

§ Sales commission payments are secured by smart contracts and provide token
holders with an almost endless source of income.

§ The price of Fire Lotto tokens will constantly increase.

SALES COMMISSION DISTRIBUTION AND PAYMENT

Fire Lotto token holders are guaranteed to get 10% of the funds collected from ticket
sales. Sales commission is distributed after each and every drawing based on the smart
contract, regardless of the volume of ticket sales. Yield per token is 1.60 U.S. cents
from each 16 million tickets sold, which is more than 20% per annum of the amount of
funds invested in Fire Lotto tokens.

Considering the fact that more than 150 billion
lottery tickets priced at USD 2.00 are sold globally each year, the profitability of Lotto
tokens may exceed 50% per annum in the very first year.

Sales commission Yield, USD (10%)
32,000,000 Sales revenue (for 16 million tickets sold per year)
3,200,000 Sales commission (10%)
0.032 Yield per token
Note: According to the Ministry of Finance of the Russian Federation, 67 million lottery
tickets were sold in 2016 for the 6/45 lottery alone. Our lottery will be available in all
world countries, including those with a tires on lotteries. The global annual turnover of
the lottery market is more than USD 300 billion. Therefore, we believe that hitting 1
billion ticket sales around the world per year is a realistic goal. When this figure is
reached, yield per token will grow by more than 12 times.