DAO Transparency Campaign: Transparent and publicly verifiable SHO lottery system
Communities are at the heart of all crypto projects. Recognizing this, the DAO Team decided to start a full transparency campaign and address the pending issues of our users, community, and token holders.
Yesterday we announced Venture Yield a new solution that will distribute the winning allocations to our users more fairly.
Today is our second announcement addressing our feedback. Starting next week DAO Maker will introduce hash verifiability for all Lottery participants.
Our community requested to see how the lottery system works. Over the last weeks, we have been working to place the system on an open-source Javascript that allows users to verify that the lottery was indeed fair. As the process requires some coding knowledge we will also publish all winning wallets to the public after the SHO has been completed.
Users that have been reluctant to participate and stake DAO tokens for SHOs due to the missing verifiability of our system can now check themselves. We will post a full tutorial blog and video on medium and youtube respectively once the system is running.
Increasing Distribution of Winners
Luck is random but not always fair. However, as a company our user experience when participating in our sales is one of DAO Maker’s top priorities. For that reason, we looked into the data of the last 20 SHOs in order to improve the UX for SHO participants.
After a few discussions back and forth we finally came up with our newest additional feature, the Priority System.
While the winners will continue to be randomly selected, the Priority System ensures that users that never won a SHO will have a higher chance of randomly being selected. All users will be given a new variable called priority. Every Time a user registers for any SHO and loses his priority is increased by factor 1.
Example:
If a community member never joins a SHO his priority factor will be 1. After registering for his first SHO and losing his priority will be increased to 2. A user with priority 2 will have double the chance of being randomly selected to win the SHO. This means that the user can still lose a second time but the chance of that happening will be lower. The users registered for another SHO a few days later and again did not win. His priority factor is now 3, meaning he has a 3 times higher chance of winning than users with a priority of 1 and 1.5 times more likely to win than a participant with a priority of 2. The same user now registers for the 3rd time to a SHO on the DAOPad and wins. His priority factor now rests back to 1.
DAO Maker grew exceedingly popular and as a result, many users often never win any allocations. Joining 10 SHOs and never winning once can be demotivating and often leads users to unstake their DAO and leave the ecosystem. Although this change will not have an immediate visible impact, it will ensure that winning tickets will be much more evenly distributed.
The priority system does not affect the likelihood of winning allocation by staking in higher DAO Tranches. It merely ensures that users in the same tranche win more fairly and evenly.
The system and calculations will be added to the public Javascript so that users can verify that the lottery is indeed random. The exact date when the priority system will go live will be in the coming week.
DAO Maker Team
