The Purse, Sponsor Take and Residual

The sum of all winning stakes contained in a lottery’s smart contract is called the Lottery’s Purse. The minimum Purse for a lottery’s must be its Quantity times the Price. This (Q * P) is called the Sponsor Take, and it is automatically transferred to the Sponsor at the lottery’s conclusion.

Most lotteries will have a Purse higher than the Take. The difference is called the Residual of the lottery. The Residual is important because it can be distributed in a number of wars between the Sponsor, Participants and platform itself. We discuss how the residual is used in greater detail in Platform Economics.