Today we’re launching PoolTogether — a no loss lottery built on Ethereum. Our mission is to create financial security by offering a healthy alternative to lotteries.
Here’s how it works: when you join a “pool” on PoolTogether you get a chance to win a prize but even if you don’t win, you get all your money back! This is possible because the prize is funded by the interest accumulated from the money contributed to each pool.
PoolTogether is based on the proven concept known as “No Loss Lotteries” or “Prize Linked Savings Accounts”. These products have been shown to divert money from traditional lotteries and increase savings. However, we’re bringing this to the blockchain for the first time. Being built on Ethereum using Dai offers three critical advantages over traditional prize linked savings accounts:
- Efficient— leveraging smart contracts to run each “pool” means more money goes towards the reward.
- Global — because Dai is used as the currency anyone can participate anywhere in the world.
- Auditable — because everything is done on the blockchain the system can be monitored and verified.
We hope you’ll participate in our first pool launching today! Our smart contracts have been indendently audited and verified by Quanstamp.
If you don’t have Dai (the currency used on PoolTogether) you can follow our guide here. Follow us on Twitter to stay up-to-date!