[bLott] - Transparency OnChain Self-Govern Lottery System|Incentive Mechanism

[GENERAL] Name and surname of main applicant

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

Build a decentralized lottery system, using Cardano blockchain smart contracts to ensure complete transparency, payment grantee for lottery players around the world.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

The project use known open source frameworks and libraries:

• NestJs
• ReactJs
• Cardano-serialization-lib

No commercial libraries and frameworks.

[GENERAL] Will your project’s output/s be fully open source?

[GENERAL] Please provide here more information on the open source status of your project outputs

The project is MIT license with:

• Public gitHub source code.
• Documentations.

[SOLUTION] Please describe your proposed solution

Marketing for startups, including industry giants like Uber, often proves to be a costly endeavor. Uber reportedly spends billions annually on marketing efforts to maintain its competitive edge. Competitors also invest heavily in advertising, with Lyft spending about $600 million on marketing since 2019 to 2023. These staggering figures highlight the significant financial burden that startups face in their quest to establish brand recognition and attract customers. Moreover, the dynamic nature of marketing platforms necessitates ongoing investment and expertise, adding further complexity and cost to the process. On the other hand, decentralized applications encounter additional obstacles in marketing, especially in regions with stringent crypto regulations. Advertising restrictions imposed by service providers and social media platforms further hinder their outreach, intensifying marketing challenges in these areas.

Building a referral algorithm system for bLott is crucial to incentivize current users to refer new ones. Leveraging the potential of referrals offers numerous advantages, such as organic growth, enhanced user engagement, and an expanded user base. By motivating existing users to refer others, bLott can tap into their network of acquaintances, utilizing trust and word-of-mouth marketing to attract new users more efficiently.

The referral system operates by rewarding users who successfully introduce new users to the platform. Whenever a new user purchases lottery tickets, a portion of the revenue from each ticket sale serves as a reward for the referrer. Additionally, when a new user wins the lottery, the referrer receives a proportional reward.

Building a referral algorithm system for bLott is essential to encourage existing users to refer new users. Harnessing the power of referrals offers a number of benefits, including organic growth, increased user engagement, and expanded user base. By encouraging existing users to refer others, bLott can tap into their network of friends, leveraging trust and word-of-mouth marketing to attract new users more effectively.

The referral system works by rewarding users who successfully refer new users to the platform. When a new user orders lottery tickets, the revenue from each lottery ticket will be deducted as a reward for the referrer. When a new user wins the lottery, the referrer is also rewarded with a small amount proportional to the reward.

The core motto when designing this referral system is to focus on users who buy lottery tickets (Lott players), because this is the group of people who mainly create transactions on the system.

So, let's take a look about what bLott lottery system is

BLOTT INTRODUCTION

bLott is a decentralized application (dApp) that empowers anyone to effortlessly design, launch, and manage their own lottery games, all while ensuring complete transparency, player safety, and automated prize distribution.

The bLott system will: "Unleash the Game maker away the lottery game" in the following aspects

• Effortless Game Creation: Our user-friendly interface and comprehensive tools provide a seamless experience for creating unique lottery games with customizable rules, prizes, and ticket prices.
• Transparency at its Core: Leverage the power of blockchain technology to guarantee the utmost transparency in every aspect of the lottery process, from ticket sales to random number generation and winner selection.
• Player Safety First: Employ robust security measures, including smart contracts and advanced encryption protocols, to safeguard user funds, protect sensitive data, and prevent fraudulent activities.
• Automated Prize Distribution: Eliminate manual intervention and ensure timely, accurate prize distribution to winners through an automated system.

Why we have do this?

• Random number: Current lottery systems do not provide convincing proof of transparency in their results, raising concerns about potential manipulation and whether players receive their full rewards.
• Solution: The bLott lottery system offers random number generation solutions with open-source code, allowing anyone to verify the randomness of any lottery game results.
• Make lottery game: Creating a lottery game requires strict adherence to conditions related to transparency, security, technology, auditing, and ticket sales, which can encounter regulatory obstacles in some countries and lack trust from players.
• Solution: The "Make Lottery" feature with customizable parameters, using smart contracts and open-source code to ensure game transparency and comply with each country's regulations.
• Profit sharing: Lack of profit sharing mechanism from revenue of each lottery ticket.
• Solution The bLott platform is designed with algorithms based on smart contracts to share revenue from each lottery game with users.

Who can use bLott?

• Players like to try their luck with the lottery
• People who want to make completely transparent lottery games

How is potential market?

• The global market size: Lottery Market was valued at USD 283.72 Billion in 2023 and is projected to reach USD 424.78 Billion by 2030, growing at a CAGR of 8.2% during the forecast period 2024-2030. (By Verified Market Report)

• The US market size: Lottery statistics show that Americans spent $105.26 billion on lottery tickets last year, making it the most popular form of gambling in the U.S. Experts estimated that the value of the lottery market will increase to a massive $194.14 billion annually by 2025. (By Search Logistic)
• While the Online Lottery Market was at US$ 11.07 Bn in 2022 and is expected to reach US$ 16.76 Bn in 2029, with growth at a CAGR of 6.1% through the forecast period of 2023-2029. (By MAXIMIZE MARKET RESEARCH PVT. LTD )

What are the features?

1. Making games: Any user can create their own lottery game and adjust the game's parameters. A smart contract will be activated to run based on the provided parameters.
2. Buying tickets: Any user can select the tickets with special numbers they love, pay for them, and then the numbers will belong to their wallet. The revenue from ticket sales will be locked in a smart contract and will not be controlled by anyone.
3. Drawing numbers: When the lottery draw date arrives, or all tickets are sold, the smart contract will initiate the Random Number Generation process to randomly select winning tickets from the sold tickets.
4. Distributing prizes: The smart contract will automatically and immediately distribute the prize money to the winning tickets without any human intervention, eliminating the need for a waiting period.
5. Sharing profits: A unique mechanism is designed to encourage more people to participate in lottery games. Players can benefit from the tickets they have sold.

How does it work?

The bLott system will process completely automatically sequentially according to the following steps:

1. Make Game: Lott makers will set up a lottery game with customizable parameters. A small amount of tokens may be required to ensure the Lott maker is genuinely interested in creating the game.
2. Activate Game: A smart contract will be activated with the input parameters, allowing players to participate.
3. Deal Tickets: Lott dealers will promote the game to potential lottery players, assisting them in purchasing tickets through their referral link.
4. Buy Tickets: Lott buyers will select available lottery tickets, pay a token fee, and then the system will confirm and send the tickets to the buyer's wallet. All ticket sales revenue will be locked in a smart contract to ensure complete transparency and prevent any tampering.
5. Draw Results: The system will conduct the lottery draw to select random numbers based on the prize structure. The numbers will be chosen transparently using the random number generation method set by the Lott maker when creating the game.
6. Distribute Prizes: The smart contract will distribute the prize money to the winning tickets, then post the hash transactions on the dashboard and notify all players.
7. Profit Sharing: A portion of the remaining revenue after distributing prizes to the winners will be credited to the accounts of game participants, such as Lott makers, Lott dealers, and Lott players, who can then withdraw their earnings.

The above process is handled entirely by smart contracts with algorithms with public source code to ensure lottery results are completely transparent, no one can influence them.

Please fee free to see the prototype that we have developed.

For more details: visit the site How bLott works

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

Our project, a decentralized lottery application built on Cardano, has the potential to significantly benefit the Cardano community in several ways:

1. Attract Fresh Users. The project has a unique marketing strategy to target the existing market of more than 100 million online lottery players globally, and this number continues to increase. This will bring users who have never known blockchain, do not know Cardano, and are even anti-Cardano fans.
2. Promoting Transparency and Trust: By leveraging blockchain technology, our dApp will guarantee complete transparency in lottery operations. All transactions and results will be verifiable on the public ledger, building trust and confidence among users within the Cardano community.
3. Fostering Innovation within the Ecosystem: Our project will contribute to the ongoing development of the Cardano ecosystem by pushing the boundaries of dApp functionalities. The tools and protocols implemented in our lottery dApp can serve as a valuable resource and inspiration for future Cardano developers.
4. 
   

Measuring Impact:

• Quantitative Metrics: We will track key metrics such as the number of active users, lottery games created, and transaction volume on our dApp. These metrics will provide a quantitative measure of user adoption and engagement.
• Qualitative Metrics: We will conduct user surveys and gather feedback from the Cardano community to gauge the impact of our project on user experience, trust, and overall perception of the Cardano blockchain.

Sharing Outputs and Opportunities:

• Open-Source Development: We plan to adopt an open-source approach for the core components of our dApp, allowing the Cardano developer community to contribute, audit, and build upon our codebase. This fosters collaboration and innovation within the ecosystem.
• Community Engagement: We will actively engage with the Cardano community through forums, social media channels, and developer workshops. We will share project updates, technical insights, and actively seek feedback from the community.
• Knowledge Sharing: We plan to publish open-source documentation and tutorials to share the technical knowledge and best practices gained during the development process. This can empower other developers within the Cardano community to build innovative dApps.

By implementing these strategies, we aim to ensure that the success of our project translates into tangible benefits for the wider Cardano community, contributing to its growth, transparency, and innovation.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

You should believe about us, because these:

1. Experienced: Our team boasts over 20 years of combined experience in application programming, coupled with 2 years dedicated to mastering the intricacies of smart contract development. Notably, bLott's development lead also spearheads the bWork application, a pioneering platform connecting job seekers and employers on the Cardano blockchain. We have a prototype for the app on mainnet.
2. Low cost: We've already established the core technical infrastructure, including a functioning mainnet on the Cardano network and a deployed smart contract. This solid foundation enables us to leverage existing resources from bWork, drastically reducing the time and cost involved in building a new DeFi web3 project.

By optimizing development through existing infrastructure and expertise, bLott ensures efficient progress and a timely launch, bringing our innovative lottery platform to life.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Tokennomic

• Determine the features and utilities of the token.
• Determine the roles and components of the bLott user ecosystem.
• Determine token allocation ratios.

Outputs

• Release the first version of bLott tokenomic

Incentive mechanism for referrers

• Criteria to become a bLott referrer
• Types of referrers
• Referral reward rate
• Fund source to pay referral rewards

Referral algorithms develop

• Generate referrer code
• Referral rewards record
• Referral rewards claim
• Tracking boad
• Analytics kits

Pilot test

• Make sure key functions work properly.
• Collect feedback from test users to improve the reward mechanism.
• Detect and fix on-chain/offchain errors.
• Evaluate the performance and scalability of algorithms.

Deploy MVP

• User guide: Prepare comprehensive documentation for users, including detailed instructions and explanations of the product's features.
• Infrastructure setup: Ensure that the necessary infrastructure (servers, storage services, databases) is ready and optimized for deployment.
• Community feed back

[RESOURCES] Who is in the project team and what are their roles?

👍 Kim Ngan - Project manager

Has nearly 10 years of experience managing online business teams, ensuring the management of teams and user communities for the bLott project.

Social channel: 

• Telegram: Kim Ngan
• Facebook: Kim Ngan

Responsibility:

• Reporting implement progress to Catalyst: Regularly update Catalyst on the progress and milestones achieved concerning grants. Ensure all reporting is detailed and aligns with Catalyst's requirements and timelines.
• Developing users community: Establish a pilot group of test users for the Minimum Viable Product (MVP) version of bLott. Focus on recruiting users for both the Game Maker and Player roles.
• Collecting user's feedback: Gather detailed feedback from pilot users regarding their experience with the MVP. Use this feedback to guide the development team in making necessary technical improvements.

👍 Thang Tran - Developers manager

Software expert along with others to create some of the very successful high volume and high availability critical mission software. With 12 years of experience in software product development and bigData analysis.

Responsibility:

• Software design at all levels
• Backend/frontend and mobile development
• Blockchain and hash algorithms
• Skill React Native, Node, Haskell, and Plutus
• Engineering management.
• Smart contract, web3 developer.

Social channel: 

• Telegram: Thang Tran
• Github:Thang Tran

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

We the costs are estimated:

₳10.000: Tokennomic ~ $3.500 (=18,52% of total)

• Determine the features and utilities of the token.: ₳3.000
• Determine the roles and components of the bLott user ecosystem.: ₳3.000
• Determine token allocation ratios.: ₳3.000
• Propject management: ₳1.000

₳28.000: Incentive mechanism for referrers ~ $5.600 (=29,63% of total)

• Criteria to become a bLott referrer: ₳2.000
• Types of referrers: ₳5.000
• Referral reward rate: ₳3.000
• Fund source to pay referral rewards: ₳5.000
• Propject management: ₳1.000

₳11.000: Referral algorithms develop ~ $3.850 (=20,37% of total)

• Generate referrer code: ₳1.000
• Referral rewards record: ₳3.000
• Referral rewards claim: ₳3.000
• Analytics kits: ₳3.000
• Propject management: ₳1.000

₳9.000: Pilot test ~ $3.150 (=16,67% of total)

• Make sure key functions work properly.: ₳2.000
• Collect feedback from test users to improve the reward mechanism.: ₳2.000
• Detect and fix on-chain/offchain errors.: ₳2.000
• Evaluate the performance and scalability of algorithms.: ₳2.000
• Propject management: ₳1.000

₳8.000: Deploy MVP ~ $2.800 (=14,81% of total)

• User guide: ₳3.000
• Infrastructure Setup: ₳2.000
• Community feed back: ₳2.000
• Propject management: ₳1.000

Total request: ₳66.000 (~$18.900)

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The budget above is estimated from actual costs in USD then exchanged to ADA at rate $0.35 per ADA. This exchange rate is equivalent to the average price of ADA in the most recent 12 months.

We have also made an adjustment in case the price of ADA drops even lower.

There are many potential reasons that could cause the price of ADA to drop lower than it is currently, such as:

• The continued global economic recession leading to an even more serious crisis;
• War spread to many regions of the world;
• Devaluation of currency due to high inflation rate...