What is PoolTogether (POOL) | What is PoolTogether token | What is POOL token
Introducing POOL
The POOL Token is live and control of the PoolTogether Protocol now rests solely with the community! This concludes a multi-year process of progressive decentralization creating the world’s first open source, decentralized, and permissionless protocol for no loss prize savings.
Key details:
- Token address is: 0x0cEC1A9154Ff802e7934Fc916Ed7Ca50bDE6844e
- 80.04% of POOL tokens have been allocated to the community, 12.44% to advisors and employees, 7.52% to investors.
- 14% of total POOL supply is available today to all depositors before January 14th, 2021 at midnight UTC. (V1, V2, V3 all included).
- 5% of total POOL supply will be distributed to all prize pool depositors over the next 14 weeks. Starting at midnight UTC, February 17th.
source: https://www.youtube.com/watch?v=NQWA0_Pj9-Q
What POOL does
The POOL token exists solely to govern the PoolTogether Protocol. Any changes to the Protocol will be proposed and voted on by POOL token holders. These proposals can include things like adjusting the number of winners, launching new prize pools, integrating new yield sources, implementing scaling solutions and controlling future distribution of POOL to protocol contributors.
Distributing POOL
The POOL token is being freely distributed to all contributors to the protocol. The total POOL token supply is 10,000,000. After a four year waiting period a 2% yearly inflation can be implemented if token holders choose. The following is the initial distribution:
- 14% of total POOL supply distributed to all POOL depositors across the V1, V2, and V3 protocol up until January 14th 2021 at midnight UTC. This is 17,072 unique addresses.
- 12.44% of total POOL supply distributed to early core team contributors (locked for one year)
- 7.52% of total POOL supply distributed to PoolTogether Inc investors (locked for one year)
- 5% of total POOL supply allocated to an initial 14 week depositor distribution (details below)
- 2.5% of POOL supply allocated to onboarding and education of new users
- 1% of total POOL supply distributed to addresses that voted in the first two snapshot governance votes AND held a PoolTogether deposit at the time of voting.
The 14% of POOL supply is a weighted distribution to all depositors based on the length and amount of their deposit.
Ongoing Distribution
5% of POOL supply has been allocated to on-going disbursal to all PoolTogether depositors. This ensures anyone who uses the protocol can freely receive tokens to govern the protocol. No action is needed other than depositing into one of the four prize pools.
The initial 5% distribution has been setup to be disbursed over the course of 14 weeks totaling 5,100 disbursed per day. The distribution is heavily weighted towards the stablecoin prize pools (see graphic). This ongoing distribution can be modified by governance.
Future Distributions
The initial distributions total 42.46% of the total POOL supply. The remaining 57.54% of the POOL supply has been place into a protocol treasury for further distribution determined by governance. This could include things like:
- Distributing POOL to those who refer deposits into the protocol
- Continuing or adjusting POOL distribution to depositors
- Setting up a grants program
- Anything else token holders determine!
Questions & Answers
What is PoolTogether?
PoolTogether is a protocol for no-loss prize games on Ethereum. Modeled on the well established concept of “no loss lotteries” and “prize savings accounts” the protocol offers a chance to win prizes in exchange for depositing funds. Even if you don’t win, you keep all your deposited funds. Prizes are made up of the interest that accrues on all users deposits.
Because this protocol is built on Ethereum using new technology, using it includes substantial risks that should be understood before depositing.
Where does the money for the prize come from?
When you join a prize pool, your money is deposited into a yield source. The yield source generates the return that makes up the prizes. Currently, the protocol supports two different yield sources, Compound.Finance and yEarn Vaults. Each of these yield sources carries its own risks which need to be understood in addition to the risk of using the PoolTogether Protocol.
What are the risks?
We’ve worked hard to ensure the security of the protocol. Our code is open source and has been independently audited by professional third party security companies. Additionally, we have a bug bounty program and do extensive internal testing. However, as with all early-stage products there are risks associated with using protocol and users assume the full responsibility for these risks. You should not deposit any money you are not comfortable losing. You can read the details of each type of risk involved in using PoolTogether here.
Do I have to enter for each prize?
No! Once you have entered into the pool you will continue to be eligible for future prizes. You do not need to take any further action. You will be eligible until you withdraw the money you deposited.
How do I know if I won?
If you joined a Pool you can check if you’ve won by looking at your “account” page after a prize has been awarded. You do not need to claim your winnings. If you win, your winnings will automatically be converted to tickets which will increase your chances of winning again!
What are my odds of winning?
Your odds of winning depend on how much money is in the pool. For example, if 1,000 Dai is in the pool and you deposit 1 Dai you will get 1 ticket. Your chance of winning would be 1 in 1,000. You can always check your odds of winning on the account page.
How do I know that the winning ticket is truly selected at random?
The protocol relies on the third party random number generator service ChainLink to provide randomness. It is not perfect but it is currently the best way to generate randomness on the Ethereum blockchain.
What prevents people from depositing right before a prize and withdrawing right after?
When you deposit into a prize pool, you are instantly eligible to win. This creates a possibility for people to abuse the system by depositing right before a prize, having a chance to win, and withdrawing right after.
The protocol prevents this by enforcing a temporary early withdrawal penalty. This means if someone deposits and immediately withdraws they will have to pay a penalty that will go to the next prize. Over time this penalty reduces to zero. The early withdrawal penalty is different for each prize pool but is generally two times the length of the prize period. Therefore the weekly prize pool would have an early withdrawal penalty for the first two weeks. Read more here.
What are the “Sponsored” deposits?
Sponsored deposits contribute interest to the prize but are NOT eligible to win. It serves the purpose of increasing the size of the prize without decreasing the chance to win. Anyone can sponsor the prize pools. Generally sponsorship is provided by individuals and crypto companies that want to help grow the ecosystem.
What are Dai, USDC and Tether?
How can I get Dai, USDC and Tether?
There are many ways to acquire these crypto currencies. One easy way is to purchase them on a cryptocurrency exchange. Coinbase is one exchange that is popular and easy to use. If you already own Ethereum, you can exchange your Ethereum for Dai, USDC, and Tether on uniswap.exchange, an open exchange.
Why does this matter?
Over 80 billion dollars are spent on lottery tickets each year in North America alone. At the same time, 40% of Americans do not have more than $400 of cash saved. PoolTogether wants to change these economics by turning money spent into money saved. We believe this is crucial to the economic safety and well being for millions of people around the world.
You can learn more about our vision and why we built Pooltogether
How does PoolTogether make money?
PoolTogether does not make money. PoolTogether is backed by some of the top venture capital firms in the world which allows us to focus on building an excellent open source and decentralized protocol.
Prize Pool Builder
The No Loss Prize Pool Builder is live! It’s now possible for anyone in the world to deploy a no loss prize pool for any token.
No loss prize games are one of the most popular consumer financial products in the world combining a chance to win prizes without risking your deposit. Currently over $100 billion is saved in no loss prize games by tens of millions of people globally¹.
Now there is a true DeFi primitive. Just as anyone can create a Uniswap trading pair or a Balancer pool, anyone can deploy a no loss prize pool with the PoolTogether Protocol.
How it works
All prize pools share the same three key characteristics 1) no loss 2) the ability to withdraw funds at anytime and 3) chance to win prizes. Prize pools are differentiated with 1) the token you deposit 2) the yield source generating the prize 3) the way the prize is distributed.
Anyone can create a new prize pool with the prize pool builder. At launch the builder supports Compound Protocol as a yield source as well as “stake prize pools” which have no yield source and the prize is added by a third party.
Security and Architecture
Prize pools generated by the builder use the same audited code as the governance managed ones on app.pooltogether.com. The prize pool contract which stores user deposits is non-upgradeable securing users funds. This means you do not need to trust the prize pool creator.
The Prize Pool creator does control a limited set of parameters to administrate the prize pool including the early exit fairness fee. The maximum this can possibly be set to is a 10% early exit fee that decays linearly over 30 days. In most cases it will be much less.
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