Overview of New Linda Utility: LindaMegaDrop
The LindaMegaDrop is a new innovative system that enables the opportunity for users to win life-changing money while greatly reducing the risk for everyone that participates.
This article serves as an introduction to the dapp and give an overview explanation and breakdown of how it all works.
Disclaimer: this is not financial advice. The content of the article is meant to be an informative piece to give people a better understanding of what LindaMegaDrop is and how it works. It is subject to change and may not cover everything.
MegaDrop Introduction
LindaMegaDrop is an application that applies concepts of a lottery system which is a multi-billion dollar industry. However instead of a win-lose outcome (mostly lose) of most traditional lotteries which is a zero-sum game, we’re taking parts and reinventing it into a collective Win-Win result where everyone benefits. This is only possible with crypto and blockchain technology.
Basic Overview
There is a reward pool referred to as the Drop Prize which one lucky winner gets. In order to participate for a chance to win, users can obtain entries by depositing LINDA tokens. A unique core aspect is that even if you do not win, you can reclaim back your token deposits, thereby greatly reducing the risk to participate.
How it works
There are a few important characteristics of the application. We will give a rundown so that you have a better understanding of how it works especially if you plan to participate.
The LindaMegaDrop application model has an innovative approach that shifts the price risk of users to that of a time risk.
Key Aspects:
Point_A = the current token marketcap
Point_B = the target / mc goal
t = the time it takes for Point_A to reach Point_B
Time Risk = the gap between Point_A and Point_B
X = represents the actual drop prize value
P = the expected final drop prize value
As Point_A increases and goes closer towards Point_B, the value of X grows larger. The gap of (A to B) is shorten. Each time A gets closer to B, the smaller gap means there’s a greater chance of A reaching B. The t-value is expected to be lower due to the shorter gap and therefore a reduced Time Risk. This is because the chance of success increases each time A increases and therefore the perceived risk is lower. This will prompt some users to join in and deposit. Although the risk is reduced, the deposit entry in LINDA tokens stay the same however the (dollar investment value) has gone up. This follows the principle of how less risk should have a corresponding higher cost while on the flip side, taking on more risk should be rewarded with a lower cost. This inverse relationship holds true even if Point A were to move away from Point B because although this results in a higher Time Risk, the deposit (in dollars) required for an entry will also go down. Generally speaking, the earlier you participate, the lower the deposit (in dollars) will be for an entry.
As everything moves towards the end goal:
— Point A draws closer to Point B
— X value goes up
— Time Risk does down
More and more people will likely want to participate and get in on the action due to the incentives (potential for financial gain). This in turn will result in more LINDA tokens being purchased, more LINDA tokens deposited in for entries, and higher prices which all contributes to helping Point A reach Point B.
Even if one does not end up winning, it is important to realize that one can reclaim back token deposits rather than outright losing (as in the case of a lottery ticket) which drives the price risk way down. This is part of the idea behind how the risk profile is shifted from a price risk to a time risk.
Purpose and Benefits
How does everyone win? Is that even possible? Then where is the money coming from?
For those that choose to participate, you’re looking at two main outcomes:
— you are the lucky winner
— you do not win but get to reclaim back LINDA token deposits
Take notice that your LINDA tokens will be at a higher value than when you first deposited in for an entry chance. What this means is that you can come out ahead in either scenario that plays out. This is the Win-Win model design.
Everyone wants to win, and the goal is to direct everyone to move in the same direction. Get everyone to move in the direction of LINDA. That way, as LINDA goes up over time, it won’t even matter if you do not end up the winner because your reclaimable tokens are gonna be worth more than the initial dollar investment you put in. That alone can be a powerful incentive when people begin to understand the model. In any case, the incentive of having a chance to win big doesn’t hurt. We’re striving for a low-risk high-reward design.
Reward prize pool: where is the money coming from?
In a traditional lottery system (zero-sum game), the prize pool is made up of money from selling tickets. A core difference in contrast with LindaMegaDrop is that the prize isn’t from selling tickets; after all, we have the reclaiming aspect. The rewards are composed of sponsors, trading fees, and partnered protocols.
Safety
For those who may be concern of fairness or possible tampering, we apply and integrated leading oracles (Chainlink, API3) as our solution. Furthermore, the entire system from start to finish is facilitated and run on the blockchain via smart contracts. Everything is out in the open.
To review the smart contract code, one can refer to this:
https://lineascan.build/address/0x662e9ff493f51f9a6f812542745d5a7057655e31#code
LindaTheDog
Website: https://lindathedog.com/
LindaMegaDrop: https://lindathedog.com/megadrop
Twitter/X: https://twitter.com/LindaOnLinea
