Introducing Edge: A Game within a Game
When we agreed to partner with Blockdraw, we wanted to do something special, something that set us apart from the field. At the same time, we also wanted to build on Blockdraw technologies and take their grand theoretical dreams and bring them to the real world.
Every day I come to work and realise we are fulfilling that dream. There is really nothing like D2W.bet. Aside from our unique interface, the fairest random number generator in the business (our Golle Algo), the best token model (Edge), and our user-friendly website; we are pushing the limits of blockchain gambling. We study our competition, we understand the regulation, we listen to our player’s needs; we are really the future of online gambling.
So today, we introduce our Edge token:
So what is Edge?
Edge is an ERC-20 Token that closely tracks ETH; we set a reference rate of 1:1 ETH vs EDGE. When you play ETH on D2W.bet you earn 1% of every ETH wager in Edge. If you bet 1 ETH, you earn 0.01 EDGE, win, lose or draw.
What do you mean it’s 1:1 vs ETH?
Well, when you bet your Edge on D2W.bet, 10% of your Edge winnings are converted into ETH and 90% back to Edge. Wait a minute! Are we saying that when you bet (and win) Edge, you mine ETH? YEAH! That’s it! Seriously, when you make a winning bet in Edge, you earn 10% of your winnings in ETH. In fact, as we will show below, each 1 Edge currently has an expected value of about 0.64 ETH when betting Big or Small in the Chinese dice game of Sic Bo. The expected value of Edge will vary with what the ‘casino edge’ is in any game where Edge is earned.
How do I get Edge?
Currently, there are only two ways to get Edge. Sign up and try our Beta platform at D2W.bet or come to the website and bet ETH to earn 1% in Edge. Keep in mind that 1% may not sound like a lot, but it’s on every bet, win, lose or draw. So if you bet over 10/15 minutes, those bets start to add up.
Can I buy Edge, yes, if you contact us, we can discuss; but once we take our system into full production, we will be selling Edge on our website to everyone. And eventually, we may even offer competitive contests (paying those winners who mine the most ETH from their Edge betting). First, we need to add more games and payment systems to allow for the sale of Edge. And of course, the plan will include reserving 0.63 in ETH for each Edge issued until that Edge is retired back our systems.
So to summarise, when you bet ETH, you earn a little Edge, and when you wager Edge (and win bets in Edge), you also win 10% of your net winnings paid in real ETH (and 90% in Edge). That’s a circle that goes on and on until you lose all your Edge.
If that sounds cool, well it is. And it’s revolutionary. We are giving back to players a portion of the ‘house edge’ in our games in real ETH, that’s the point! And we are doing it in a fair way — making all players gamble their Edge to earn ETH. But what is it worth? Well, it turns out that giving only 10% in ETH for your winning bets ends up being a lot if you play it correctly and often. However, since we don’t directly convert Edge to ETH (those models are not working, look at our competitors), we are giving everyone an equitable chance to mine Edge’s expected value.
What is the expected value?
“The expected value of a discrete random variable is the probability-weighted average of all possible values. In other words, each possible value the random variable can assume is multiplied by its probability of occurring, and the resulting products are summed to produce the expected value.”
Put more simply; it’s what Edge costs D2W over time, over millions of wagers. It is our cost. But it doesn’t mean you will convert every 1 Edge wager into 0.63 ETH; however, it does mean that you may create less or MORE into ETH. But on average, you should be able to produce 0.63 ETH for each 1 Edge.
Before we tell you how to calculate the expected value of Edge, let’s give you some simulation results for Edge Wagers on Big or Small in Sic Bo. Here is a real simulation I ran while writing this article.
After running 1,000,000 simulations of the average of 202.883364 rounds
The mean is 0.62
The maximum round was: 3405
The minimum round was: 15
The maximum ETH created was: 11.149999999999464
The minimum ETH created was: 0.0
Let’s take this simulation apart a little. First of all, we can see that at least one round resulted in No ETH creation (yeah that sucks). Now a “round” is the number of bets in Edge you make until you lose all of your Edge and mine as much ETH as possible. But, alternatively, at least one other round resulted in 11.14 ETH being created for every 1 Edge (wow, right! And I have seen rounds of 30 in some simulations.). The average ETH created from all 202.89 rounds was 0.62 ETH created for each 1 Edge.
Too me this is fascinating because it makes Edge valuable and creating Edge exciting! But there is a lot more going on dynamically here because Edge creation prolongs gameplay significantly. Because our experience shows that an Edge gambler plays all his Edge until its exhausted (which is the rational thing to do) and only then bets the resulting winning ETH.
And please look at the average number of rounds! What this means is that it took an average of 202.89 individual betting rounds based on this simulation to lose all your Edge and in one round it took 3,405 rounds! Given the fastest that you can bet in Sicbo right now is about 60 wagers per hour, efficient wagering of Edge could result in over 3 hours of betting on average (and that’s before you bet the resulting ETH)! So not only can you mine ETH by wagering Edge, you can gamble a lot more!
And finally, none of this analysis takes into consideration that the ETH you created could win you more Edge and ETH! The entire process is circular.
Now this simulation was based on betting Big or Small in Sic Bo. Why did we do that? Because those bets are the lowest ‘house edge’ for the Casino, currently Big and Small give the house a Casino edge of 2.78%. Other bets on the table will produce a lower expected value of ETH, but often that will produce a higher variance.
What does that mean (sorry for the play on words)? Well, take the triple six bet on Sic Bo which pays 180–1. This means if you bet 1 Edge and win (it’s unlikely, but it does happen), you will win 18 ETH and get back another 162 Edge for each 1 Edge wagered (plus your 1 Edge returned)! That’s what we mean by variance. On that bet, Edge will cost D2W.bet 18 ETH (and counting)!
All of these facts are what makes Edge so exciting.
So, how do I really calculate Edge?
Well, you need to know the house gambling edge and the conversion rate for winning Edge bets into ETH, then the rest is pretty easy:
Let H = Casino Edge (2.78% for Sic Bo Small/Big Bet)
Let C = Conversion rate for Edge>ETH (currently 10%)
First, we calculate how gambling turnover is required to earn 1 ETH on a 50/50 style wager:
Turnover Required = (1+H)/(C/2)
For Sic bo’s small/big bet that means 20.556 = (1+0.278)/(0.10/2)
Then we find out how much we paid the Casino for that 20.556 turnover
Cost of Turnover = 20.556 X 0.0278 = 0.5715 Edge
Next, we add that to the 1 ETH we created:
1 + 0.5717 = the cost for 1 ETH = 1.5717 Edge
Then we divide to get the final answer:
1 ETH / 1.5717 = 0.636 ETH
Once again, that’s the theoretical mean expected value, but that’s what it works out to in typical simulations we have run over millions of trials. But as we showed above, some people will earn less, and some will earn a lot more. There is a lot of variance in our games, so there will be a lot of variance in the actual production of ETH from each unit of Edge. The actual distribution will depend on what games Edge is played on, what the wagers are on those games/bets and what the Casino edge is on each wager.
Edge is the most exciting thing to come to online gambling. It pays back users in an effective way, it prolongs the gambling experience, and it really becomes a game within a game!
When I play Edge, I get excited about creating ETH. And so will you!
Eventually, we will offer contests allowing players to compete against other players to mine ETH from their Edge. There are so many possibilities to Edge; we are still thinking about them!
Come visit us at www.d2w.bet and get up to 0.60 Edge for free gambling just for trying and testing our live “beta” out and registering for our game.
More games are coming and please expect our platform and technologies to evolve significantly over 2019.
