Hello dear community,
Thank you for your responses from our other thread:
https://bitcointalk.org/index.php?topic=1023530.0 We at Open Ocean have decided to make our product known now for any interested parties (the coding is done, it will be on servers within a month and we are now working on the mobile app).
Before I list the details I must clear up that by what we meant with regards to no house edge. No house edge means we will not adversely affect any parties changes at winning using our code. We will however rake on action to pay our fees.
With no further ado, Open Ocean would like to present:
Lottery BondsWhat are Lottery Bonds?Lottery Bonds are an online Bitcoin draw that pays out two groups of users (Ticket Holders and Bond Holders) depending on how many users in the first category (Tickets) are active on the site.
How to use Open Ocean Lottery Bonds:To play, first deposit funds to one of your two Personal Deposit Addresses.
- The first address funds your Bond account
- The second address funds your Ticket account
You need to wait until the transaction gets a confirmation before the balance becomes available
How does the System work?Whenever you deposit Bitcoin into your Bond Account, our database will register the time and price of the account update
The price of a Bond is $100USD
• If the price of Bitcoin is $100/BTC and you fund your account with 0.5BTC you will have 0.5 Lottery Bonds
If the price of Bitcoin is $200/BTC and you fund your account with 0.5BTC you will have 1.0 Lottery Bonds
• The entire community’s collective Bonds collect 2% from the total of sum of Tickets entered into the draw pool
This 2% is distributed amongst Bondholders by the weight of their holdings
o A bondholder with 1.0 Bonds will received twice as much as a Bondholder with 0.5 Bonds
Therefore the more Ticketholders there are, the bigger becomes the 2% return divided among the Bondholding community
When a Bondholder withdraws their Bond, a 2% fee will be removed and put forward into the following Ticket draw
The price of a Ticket is $1USD
• If the price of Bitcoin is $100/BTC and you fund your account with 0.5BTC you will have 50 Lottery Tickets
If the price of Bitcoin is $200/BTC and you fund your account with 0.5BTC you will have 100 Lottery Tickets
• Tickets are entered into a draw pool against each other
Each Ticket is assigned a random number which at the time of the draw (12:00PM CET) will determine a winner
o The ticket with the highest number wins the entire draw pool minus 15%
2% is divided by weight among Bondholders, 3% goes to the services providers, and 10% is forwarded towards the Mega Jackpot
What is the Mega Jackpot?The Mega Jackpot is a side prize that will cumulate with each additional draw and will be awarded on a roughly monthly basis to any winning ticket
If your ticket wins, you will have a chance to choose a number out of 30, choosing the right one unlocks the Mega Jackpot
• Choosing the wrong number cumulates the Mega Jackpot available for the next winner
MembershipThough the minimal statistics will be available to all (i.e. total of Daily and Mega Jack Pots) for a small membership (very cheap, optional) we will provide additional statistics on how many bondholders and ticketholders there are and how the holdings are separated with regards to who is most likely to win the next pot and who will receive the most returns on pot coupon payments
• Hopefully this will allow users to optimize on their investment/gambling choices
What Open Ocean Lottery Bonds hope to AccomplishLotteries are used to raise funds from the public to be invested in public goods
The bonds are a way of directly transferring the money from lottery ticket buyers to lottery ticket funders (who are Bondholder that submit a small percentage of their holdings towards the next pot whenever they withdraw funds from their account)
• Taxes are inefficient, this method uses a gaming-backed security to pay out interest (it’s pretty novel and took us 2 years to develop, even though it’s not that sophisticated)
• An investment mentality is rewarded, since you will not lose bitcoin by simply buying and holding onto bonds (unless you withdraw at a point where your 2% fee > than your 2% pot coupon, which is divided by weight)
The return on your bet (ticket) rises in proportion with the decreases in your chances of winning
• Each additional ticket in the draw pool will give you an extra 85 cents on every dollar whilst decreasing your chances by one increment relative to the total amount of tickets in the pool already
This is statistically superior to 49 choosing 6 or 7 which would require over 13983816 tickets to be sold before making a similar return in the case of choosing 6, or 85900584 tickets to be sold in the case of choosing 7
The risk/profit ratio is clearly superior, the direct transfer of money to investors accounts is also superior to misappropriation through public spending (for the Bonds)
There are very few investments that provide returns on your bitcoin, we hope to add another to the fray
This could be a global lottery (in the very distant future)
• Every day someone could win huge, whilst, though less frequently (once a month on average if we choose to use 30 choose 1) Mega Jackpots could be revolutionary
• Draws could be sped up as we are now working on the mobile application for this
There are many, many more possibilities.
You tell us if this idea is new, novel, and game-changing. It may not be, but my colleague and I tried our very, very best and earnest to be cavaliers.
Failure does not frighten us with regards to public opinion on the novelty of our idea. Failure, however, is not an option with regards to user experience, rest assured your interests are in our hearts via economic incentive.
• Our next move is to have our site audited by a security expert we know to make sure we are in line with best practices.
Constructive criticism is welcomed and encouraged and you can be nevertheless, because we want honest-to-goodness advice on how to make this successful on a grand scale.
Despite the fact that there are more intellectually stimulating projects out there (which we support and admire), we believe that this lottery offers value in the return on equity purchased per unit of risk (relative to all other lottery systems out there), as well as means for conservative and patient bitcoin holders to create a small rake with their assets.
Lastly, we aim to outperforming governments in the redistribution of public funds through lottery operations by taking lottery systems and privatizing them (it's not a new concept, but we hope that using bitcoin and coupon-paying securities to do so makes it ingenious enough to stand apart).
