TedLotto is an exciting new product offered by Tedcrypto that adds an element of fun to staking. In addition to the usual APR/APY you earn by staking and securing your favorite projects/network, you will also be eligible to participate in a no-loss lottery.
So, how does it work? This application works on top of a Proof-of-Stake delegation system. Your tokens will be delegated/staked as usual and on top of that delegators will earn x amount of tickets per tokens staked depending on the chain and the current claim rate (e.g. 10 $JUNO = 1 Juno Ticket). These tickets are perpetual and recurring, meaning that they will be valid for every lottery until you withdraw or redelegate your tokens. Unlike in normal lotteries, delegators never lose their tokens/money, and always earn rewards through PoS (Proof of Stake), even if they never win the lottery.
When TedLotto is enabled for a particular project/chain, a dedicated wallet is created to hold the lottery prize. Every 15 minutes, hour, or day (depending on the blockchain), a portion of the rewards is sent to this wallet to increase the pool size and therefore the jackpot prize. The balance of this wallet is then delegated to Tedcrypto's validator, generating more commission rewards that are sent to the lotto wallet. As the prize wallet grows, it attracts more delegators, which in turn generates bigger commissions and so on.
The lottery draw day will vary from blockchain to blockchain, so it is recommended to check the different blockchains to know when the draw is happening. Before the draw time, all processes related to staking and ticket generation might be temporarily held to prevent any sort of gaming around the draw time.
To participate in TedLotto, you need to connect your wallet to the system at least once, so it recognizes you as a participant.
The lottery drawing is conducted following a decentralized and non-predictable process. This allows Tedlotto to deliver a fair lottery without relying on any central party. Nobody, including Tedcrypto team, can predict the winning ticket combination.
{% hint style="info" %} Attention: Tedlotto is an adaptation of Glow Lotto to cosmos. The idea is the same but the contents are a lot different. Glow Lotto is now stopped due to the Luna/UST problems! {% endhint %}