Ethereum Smart Contract Ponzi Schemes: Part 4
Handover Ponzi Schemes
This article is part of a series of articles on the types of Ponzi Schemes found on the Ethereum Network. Read part one, part two and part three!
Despite exhibiting a variety of incentives and risk to reward profiles, all of the schemes discussed in this series so far have very similar data structures.
The majority of schemes analysed the research piece utilize one of two data structures. The first is what we traditionally associate with Ponzi and Pyramid schemes: Tree-shaped. The second is a much simpler structure: Chain shaped. Read part one and part two to learn more about these.
The Handover scheme, which we’re diving into here, is chain shaped.
Handover
Unlike the basic chain shaped scheme which has a static minimum entry fee, the Handover has an initial entry fee which increases every time a new investor joins the scheme. This ensures the previous investor is paid as soon as a new member joins, but it also means that the scheme becomes less enticing as more users invest due to inflated entry fees.
Here’s how it works.
Walkthrough
As the owner, I deploy the smart contract and advertise it as a DOUBLE YOUR…
