Nubits Prize-Linked Savings Account

Nubits Prize-Linked Savings Account

This is to start a dialog of creating a Nubits Prize-Linked Savings Account function within the Nu ecosystem. I’m personally interested in seeing everyone’s thoughts on this and possible ways we can bring it into Nu.

A Prize-Linked Savings Account is a savings account “where some of the interest payment on deposits is distributed in larger amounts to fewer people according to a periodic lottery.” It has been noted that Prize-Linked Savings Account can be used to incentivize saving. Admittedly, the system I show below can be seen as not the same thing but it is the inspiration and the aspiration of the system.

At the initial startup of the system, a fixed amount would be voted on by shareholders on how much and which type of reward will be awarded. A time interval, lotto_length, would also need to be set for the length of time a user has from the start to “purchase” tickets.
lotto_length would also be the amount of time the user has to lock their coins for to receive tickets. I was thinking 1 Ticket per 1 NBT. Any “change” would not be locked. A variable, initial_date, would then be set to the current timestamp.
After the set time interval, lotto_length, from the initial_date has expired (in the example above it is four weeks), the system would choose a winner by randomly choosing the one of the tickets sold during the lotto duration. Note: The User’s funds would still be locked until the duration of lotto_length from their date of purchase has expired.
From that point on, the system would either be funded by a interest percentage of the NBT locked in the system, similar to parking rates, or reward a set amount of NSR to the winner. This would be decided by the process of voting also similar to how the current parking system works.
If it is funded by a percentage of the NBT locked in the system, I would imagine the reward for the next drawing would be funded by the current amount of interest gained during the previous iteration or drawing period. Such as shown below:

Customer Experience:

The aspiration of this system would be to have a process of generating a positive influx of value into the Nubit ecosystem by having the NBT locked (as the user sees) and a custodian or some form of decentralized system generate interest of real value and reward the winner with a small dividend to shareholders.
I wish I have more time to flesh this out. This, admittedly, half-finished idea has been sitting on my computer for a few months now and I feel it is better to get it out into the light and have a chance to be realized than sit on my computer for some unforeseeable amount of time.


Very interesting proposal! I like your flow charts.

This is definitely worth pursuing.

Is the winner selection happening on blockchain?
If yes, is the system supposed to create the winning transcation payout on it’s own?

very interesting idea, I had no idea!

I’m glad Hibero brought this out as I also had it lingering around somewhere. And it is certainly something worth progressing. And hey, you can make profits with it and it encourages holding NBT :smile:

Here is a similar real world example if you are interested on how it works: (I’m not related in any way to this company, neither am I a customer)

I think it will have to, to make it trustless. Care will need to be taken on the random number generation though.

Really cool idea, I had to read it several times to really understand it. The question is more if a protocol change to include a gambling feature won’t be perceived the wrong way. It actually would be a pretty good candidate for an NBT pegged Nu DAO.

This is an important point, since we of course cannot send coins in the name of some address. A possibility would be to burn the coins initially and to recreate them (like in a grant) in the block where the winner is picked.

I guess the block hash could already be a good seed.