A blockchain lottery plans to turn crypto gambling fees into Ethereum developer funding
Decentralized lottery protocol Megapot is teaming up with Protocol Guild in what the firms describe as the crypto industry’s first programmable charity lottery.
What to know:
- Crypto lottery platform Megapot is teaming up with Protocol Guild in a blockchain-based charity lottery that automatically directs referral fees from ticket sales to Ethereum core developers.
- The initiative aims to address Ethereum’s growing developer funding gap by turning speculative crypto activity into a transparent, onchain funding stream for the engineers maintaining the network.
Under the arrangement, users can buy tickets for a daily lottery through a dedicated Protocol Guild portal for a chance to win prizes from a pool exceeding $1.1 million. Megapot said 100% of referral fees generated from ticket sales will be automatically distributed by smart contracts to Ethereum developers supported by Protocol Guild.
The effort comes as concerns around sustainable funding for Ethereum’s core infrastructure have intensified. While the blockchain underpins billions of dollars in decentralized finance and crypto trading activity, many developers maintaining the network earn significantly less than peers in other parts of the industry, according to Megapot.
Protocol Guild said it has distributed roughly $38 million to Ethereum contributors since 2022 through donations and token pledge initiatives, but estimates that maintaining and scaling Ethereum could require between $30 million and $60 million annually.
