Author: AolottoFoundation

Originally published at: @aolotto_ao

Original link: https://x.com/aolotto_dao/status/1900151742681276451

background

Aolotto is a 100% community-operated 1 USD lottery protocol on the blockchain. 100% of the protocol profits are returned to the community. In the Aolotto token model, 50% of the protocol profits (equivalent to 20% of total sales) are used for dividends for holders. Since its launch, 2 rounds of total $2117 have been distributed to the community. However, during the operation, we found that the dividend model for holders has several defects:

1. The dividend waiting period is long. Currently, the accumulated dividend amount must be greater than 1,000 US dollars to issue a dividend once;
2. The dividend statistics of DEX liquidity providers are complicated because the dividends are calculated based on the currency balance at the time of issuance. When the user's $ALT is added to the third-party LP Pool, additional balance statistics are required;
3. Once the dividends are over, there will be a period of selling pressure, which is not conducive to the stability of the currency price.

Solution

Aolotto decided to upgrade the coin holding dividend to a daily staking dividend and cancel the minimum dividend amount limit of $1,000.

Users lock $ALT to the staking contract to obtain veALT, and receive daily dividends based on the veALT balance ratio; the shortest lock-up period is 1 week (7 days) and the longest is 4 years (1440 days). The longer the lock-up period, the more veALT you get. veALT is designed with reference to veCRV. It is an equity token that decays over time and has no transfer attributes. In addition to receiving daily dividends, veALT also represents voting weight in decentralized governance and consumer rights in the LottoFi ecosystem.

After upgrading to staking dividends, the dividend amount remains unchanged, but users who only hold $ALT will no longer receive dividends, and only users who participate in staking can receive them. For detailed information about staking dividends, please click here to view the document .

implement

1. The staking function will be launched and open to users at 00:00 on March 18, 2025;
2. The first dividend will be issued at 00:00 on March 20, 2025 (the actual execution may have a few minutes' error);
3. Before 00:00 on March 18, the original dividend for holding coins will still be implemented. If the minimum dividend amount is not reached, the remaining dividend will be used for the first day of staking dividend on March 20;
4. After the pledge dividend is launched, the dividend will not be automatically distributed to the pledger's wallet. Users need to withdraw manually. The minimum withdrawal amount is $0.1. If the user's dividend account balance is less than $0.1, they need to wait until the dividend accumulates to $0.1 before they can initiate a withdrawal.

The new staking dividend mechanism optimizes the token model of $ALT, improves the value stability by staking $ALT, and provides momentum for the long-term development of LottoFi. We sincerely invite community members to actively participate and experience the benefits of this new upgrade together. Please plan your participation method reasonably according to the rules!

Aolotto Foundation

2025/3/13