Lottery Creation
A Sponsor determines the following lottery parameters which are encoded in the MSC for that lottery:
Item Description
Includes Web2 links with images and more details
Lottery Duration
How long the lottery lasts, in time (lottery closes with closest block after this duration)
Price of Item
Price Sponsor receives for each item, which is also the minimum stake price for the Participant. Includes the Currency of Account
Quantity Available
Number offered, Q >= 1
Sponsor Tokens Accepted
Which tokens the Sponsor will count towards ticket weight – can include other Sponsor-created tokens.
Collateral
How much money is locked into the winning NFT.
Fulfillment Details
A statement on how the Sponsor plans to trade the winning NFT for the good – be it physical or digital. Will also include shipping restrictions – highly important!
Ticket Weight Factor Parameters
Explained in detail here.
Redemption Period
How long after the lottery the winning NFT can be held or traded before it must be claimed. After this time, a Sponsor could refuse to exchange for the good thereby forcing the holder to burn for any collateral locked into the NFT.
(Optional) Start Date/Time
Lotteries can be triggered to start at a certain point in the future using Keepers. Optional due to additional cost to implement.
Currency of Account must be in a stablecoin or stable fiat currency.
Collateral
Being an open platform, Sponsors are highly encouraged to collateralize their lotteries in order to give Participants some insurance for their stake. This is achieved by locking value into each winning NFT at the creation of a lottery. A lottery is considered fully-collateralized if the value locked in each NFT is the same as the price of the good. The collateral must be in the Currency of Account for the lottery.
Note: Collateral will not represent the total value staked for those winners who included a price premium
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