How to bring Value to the INT token and increase Lotto interest

General
1

In my opinion, one of the big reasons why the project is struggling right now is because we’ve paid little attention to our token holders; yes we have INT emissions going to IFTs but the market has clearly stated that this simply is not enough value to warrant a HODL approach to INT.

At the same time, the market has also clearly stated that the lottery needs to offer more than just IFTs and a weekly grand prize that’s reliant on number of tickets bought.

The Lotto’s core prizes are IFTs. The value of these IFTs create a sort of “floor” for how many tickets we expect to be bought every week. The higher the value of the IFTs the more tickets are bought. And because ticket looping in inherently price positive, when INT price is up and climbing, it creates a positive feedback loop for both the number of lotto participants as well as the token price.

But when INT price is dropping the exact reverse happens and the project turns into a snake eating it’s own tail, and we need to do something to stop it. We need to:

  • Increase value/utility of the INT token
  • Make the lottery more exciting

I think Kal’s referral system post offers a lot of good ideas for better lotto mechanics, so i’ve borrow a lot of aspects from it for my proposal

These are the general ideas i have that i believe will collectively increase demand for INT as well as increase interest in the lotto

  1. Give $50,000 (15 ETH) to IFT holders as “backpay” from protocol fees
  2. Change lotto-fee split so that IFT holders receive profit share via ETH+INT
  3. Add in a “bumper” and “seed” prize to weekly lotto - first bumper funded by Treasury

$50,000 “backpay” to IFT holders
I asked myself “what would make me buy and hold more INT?” And the only real answer i came up with was profit share. 15 ETH may seem like a lot, but the INT treasury has made a total of 67 ETH from Uniswap/lottery fees and is currently holding over 50 ETH. I propose we give back ~22% of these total fees to ACTIVE token holders in the form of a 30-week staking campaign.

IFT holders would have to actively stake and LOCK their IFTs for the duration of the campaign to receive their share. Every week 0.5 ETH would be airdropped evenly across all staked IFTs.

Currently there are 435 minted IFTs, if ALL 435 minted IFTs are staked on day 1 the APR would be roughly 35% paid in ETH (at current INT/ETH prices).

Change lotto-fee split
This is borrowed directly from Kal’s post and i believe could work in conjunction with his referral system plan.

Currently fees from the uniswap pool are split like this:
80% of ETH > Weekly grand prize
20% of ETH > Treasury

80% of INT > Burned
20% of INT > Weekly grand prize

I would propose a change like this:

40% of ETH > Weekly grand prize
10% of ETH > Seed next round’s grand prize
30% of ETH > Added to the “bumper” prize
10% of ETH > Treasury
10% of ETH > Airdropped to all IFTs (no staking requirement)

80% of INT > Burned
20% of INT > Airdropped to all IFTs (no staking requirement)

These changes would amalgamate to:

  • Weekly grand prize receiving ~50% of ETH fees (40% from current week, 10% from past)
  • IFT holders receiving 15% of TOTAL fees
  • a “bumper” prize that progressively gets larger every week but with a low hit-rate
  • one big downside to these changes is decreased treasury income, but if we felt like we needed to offset this we could add a 0.05% buy/sell tax to the token

Bumper and Seed prizes
These are two things that have been talked about and desired for a while, and they’re some of the key missing elements INT needs to become a “real” lotto instead of just a juiced up 50/50 raffle

The seed prize speaks for itself, we take 10% of the ETH fees every week to juice up the prize for the following week so we don’t start from 0 grand prize.

The bumper prize is what we really need to make INT a true lotto and make it interesting enough for non-farmers to participate. Like Kal mentions in his referral-campaign, i think we can take $20k in ETH from treasury to seed the first bumper prize.

After playing around with a probability calculator, I would vote on a 5% hit-rate every week. With a 5% hit rate, there’s an 18%, 33%, and 79% chance the bumper is hit after 4, 8, and 30 weeks (respectively). If the bumper has a 10% chance it’s likely to hit 34%, 57%, and 95% of the time, which feels like a bit too often for us to sustain right now. We could also have 2 separate bumper prizes with a 5% chance each, but the ideas around this are also somewhat limitless

Even after paying out 50k to IFT holders and seeding a 20k bumper prize, the treasury would still be VERY healthy and able to cover all these costs as well as future costs.

These changes would also give TRUE synergy between the INT token and the INT Lotto; token holders benefit from lotto sales and lotto sales benefit from INT price appreciation

INT holders would feel much more compelled to hold longer and support the project knowing they’re receiving profit share and the Lottery would appeal to a much wider audience then just IFT farmers when the REAL grand prize is almost always getting progressively larger

3 Likes
2

The bumper prize would be a great idea

In fact I would propose more where it’s possible to snowball and even more

Big numbers attract attention. We can’t do shit without attention heh heh

Tbh I think $1m in prizes will grab eyeballs

3

How can we do this? Are you suggesting we build another rewards contract for stake and lock? We already spent money in building one reward contract which is about to be completed. My recommendation is we should look into reusing the solutions we have and build up on it, not completely revamping and starting another reward mechanism while we haven’t even have a chance to build the first one which we approved.

The airdrop contract would have feature to not only do INT emissions but also ETH. If DAO wants to we can put a proposal to do some ETH emissions along with INT emissions each week. This way we don’t have to build a separate costly stake and lock contract do ETH emissions.

We have to be careful about what things we can implement and how we do things as there is a dollar cost to each change with respect to contracts which includes audits and also time.

4

I like this BTW this won’t need any additional changes if we implement the changes I suggeted in my proposal. The way we can airdrop these INT and ETH to IFT holders is already part of the airdrop contract design.

All we have to do is divert these rewards each week into reward contract bucket and everything will be automatic in how rewards are distributed to holders.

No separate contract logic needs to be built.

BTW we don’t even have to wait to do these distributions until the changes to reward split area made. We can take the proprotional amount from treasury and feed the airdrop reward contract buckets and distributions will be made automatically.

I support this and its a good idea.