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:
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.