Glossary

Asset Smart Contract (ASC) – Platform smart contract which holds all the assets for the platform. These include all Sponsor tokens, winning NFTs, and the platform treasury.

Collateral - Money locked into a lottery’s winning NFTs.

Currency of Account - The currency (USD or other Fiat, or Stablecoin) that a lottery is defined by. Set by Sponsor for each lottery.

Lottery –Each lottery is a smart contract which represents the sale of a good, offered by a Sponsor, at a quantity (Q) and a set price (P). In addition to P and Q, it has other parameters.

Manager Smart Contract (MSC) – One of two platform smart contracts, it controls and holds the creation, editing, running, entering, cancelling, finishing, and outcomes of a lottery.

Participants - Individuals who participate in the lottery, identified by a wallet address.

Participant Stake - The amount of money a Participant locks into the Lottery in order to put a ticket into the Pool.

Pool - The total tickets (weighted) entered into a given lottery.

Price Premium - The ratio of a Participant’s Stake to the Price of the good.

Purse - Total money deposited into Lottery’s smart contract.

Residual - The excess value in the Purse once the auction ends. Is equal to the Purse minus the Sponsor Take.

Sponsors - Brands, companies, organizations or individuals who create an auction. They sponsor by staking an amount of money which allows them access to the dApp’s lottery contracts (MSC and ASC).

Sponsor Take - The P*Q of a lottery, owed to the Sponsor upon completion.

Sponsor Token - Unique to each Sponsor, these tokens are created and distributed by the Sponsor to participants to reward them for loyalty and value creation.

Ticket - A weighted chance to win the lottery. The weight (probability) of a ticket is a function of its Price Premium, item Price, and their Points with that particular Sponsor. Participants can acquire multiple tickets.

Ticket Weight Factor (TWF) - This comes from a function determining how stake amount and Sponsor tokens determine a ticket’s relative probability to winning vs. a base ticket (base ticket stake = price, and points = 0). Determined by the Sponsor for each individual lottery.

Token Distribution Score - A measure of the variance in the distribution of a Sponsor’s Sponsor tokens to other wallets. This Factor determines how the number of a token affects the Participant’s probability in this Sponsor’s lotteries.

Treasury – The dApp platform’s capital held in Stablecoin on the ASC.