Speaker 0:  the 300,000,000,000 lottery industry is a dinosaur that hasn't evolved in fifty years, but code is finally eating the jackpot. we're moving from a state run monopolies on chain prize pool where you can stop being the gambler and start being the house. the world's first internet scale lottery, megapot, is a decentralized lottery protocol built on base that aggregates global ticket sales into a single twenty four hour drawing. it uses smart contracts to automate payouts, cutting out the massive administration overhead of traditional government lotteries. it offers 25% better economic value to players and allows anyone with a crypto wallet to earn yield by providing the liquidity that backstops the jackpot. what do you think about this crypto megapot lottery, john?

Speaker 1:  i love this. i think this is cool. this is a cool way to use blockchain technology. i i'm super excited about this. i'm not a huge lottery person, but i'd buy a crypto lottery ticket. so instead of relying this is cool because it's not gonna rely on governments or private companies. so the crypto lottery would use smart contracts to manage ticket sales, payouts, and jackpot growth automatically. okay? so the key insight is that traditional lotteries, they typically underestimate how jackpots grow because bigger jackpots attract more participants creating a feedback loop. so with the crypto systems, they could optimize this loop in real time. so they could potentially create much larger, faster growing prize pools while removing the need for centralized control, which i think is great. you've got more of a trust here that it's actually, a random lottery. right? so, at the core crypto allows this to be programmatically optimized, dynamically adjusted, and fully transparent. and it would be implemented using smart contracts, like ethereum. shout out to vitalik. on chain randomness, which could be like verifiable random functions or vrfs, automated payouts. and this eliminates fraud risk, mismanagement, and delayed payouts. so it becomes deterministic, auditable, and unstoppable. so, this is really cool. now to dive a little bit deeper into this is behavior economics. so research and crypto lottery design shows that users don't behave rationally. they overvalue low probability, high reward outcomes, and jackpot size disproportionately drives participation. so that leads to nonlinear demand curves and irrational but predictable participation strikes, spikes. but the crypto systems can exploit this by adjusting reward structures dynamically, like dynamic ticket pricing, and designing incentives to manage to maximize engagement. what do you think about this? is this a trusted, potential offering, or, do you think it's fair? do it could be truly random? what are your thoughts on this?

Speaker 0:  well, we are talking about basically a protocol. we're not like, there are users doing crypto lotteries using this protocol now. the question is, like everything on the internet, not everyone and everything is trustworthy. so we are going to see, don't know how, don't know when, scams for crypto lotteries that claim they're using this technology, that might not be using this technology, or finding a way around it, or not having the funds on the back. we just don't know because scammers are gonna scam. right? we don't but if you can find legitimate lottery, that is backed by someone you a company or whatever you trust with this, this seems like a really cool technology. you know, they're currently live and operational on the base network. the cost is, generally $1 a ticket. it's, it's accessible for anyone on the evm compatible chain, via back end intense, and you can enter a global jackpot from your mobile wallet in seconds with a higher statistical return than your local gas station's powerball ticket. for example, 63% expected value, significantly higher than 50% standard in traditional lotteries. 17% refer referral fees, a protocol incentive for distributors compared to six to 8% for retail stations. so if you, you get referral fees for selling across your network and whatnot, which is higher than, what they get paid at the gas stations or if you have a terminal, and 73% apy, which is the initial yield generated for liquidity providers during launch week. so i am very interested in where this goes and how long till the governments try to put a stop to it.

Speaker 1:  yeah. so, yeah, i think this it's really about mechanism design rather than gambling. it's not about lotteries. it's more about how incentives behave in open systems, where designing systems where behavior drives growth loops. so, i know they're they're selling it as a lottery, which it kind of is. but yeah. i think this is i think this is a cool innovation and a cool use of blockchain technology, and i'm actually going to, buy some blotto and try it out, i think.

Speaker 0:  yeah. this sounds really interesting. and the concept of the lottery appeals to a lot of mass public, so it might just be one of the concepts that start to bring crypto more mainstream. mhmm. just because if people can now, quickly

Speaker 1:  it'll only become more mainstream if they can make it easy for people to buy, the blotto,

Speaker 0:  crypto. it's all part of the thing. you gotta have the desire. you've gotta make it easier. yeah. people don't wanna spend a dollar to do this and have to go through weeks of kyc implementation for, so the government can tax you and stuff. like, do you know your client? so we'll have to see how this goes, but the concept that you can do this quickly, transparently, are we going to see stuff like this used by other things? like, you go to the leaf game, and there's a fifty fifty draw. you go to some of the things you know, are they gonna start implementing something like this that's definitely more transparent than someone going in the backroom and picking a ticket? we'll see. i like the concept. i like the technology behind it. anything where there's, like, a mega jackpot and all that kind of stuff, we have different laws all over the world about yep. what's taxable and what isn't taxable on this stuff. so, from a lottery point of view, we'll have to see how long it remains open, but the technology is very cool.

Speaker 1:  yeah.

Speaker 0:  skeptics are saying if multiple users hit the jackpot in a short window, the liquidity providers, the house can suffer significant principal loss. this is not a risk fee for liquidity providers because you can get paid for being a liquidity provider as part of the jackpot as well. if you're a tech, enthusiast, test the cross chain intent flow by buying a ticket, from a non base chain to see how the abstraction works across the bridge. there's a lot to be learned with this technology. that's why i think it's really cool. megapot is proving that smart contracts can provide a more transparent, efficient, and profitable math equation than any state government can offer. would you rather take 63% payout odds on a chain, or do you feel that luckier supporting your local state school fund with a paper ticket? let us know in the chat what you'd be easier to support or willing to support.