Technically not a lottery but a bonus:

Officially it’s not a lottery because users don’t need to purchase tickets, but this name helps understand it. Technically, it would best be described as a “Randomized Staking Bonus.”

Once per week, eleven lucky stakers are pseudo-randomly chosen, and the winning funds are deposited directly into their winning staking address.

To qualify, a user must be actively staking a minimum of 10,000 DIVI in a single transaction and mine at least once that block week, as mentioned in this article. 

There is no limit to the amount one uses for staking. The more you have coins working, the more probability you will stake and earn the opportunity to win a lottery bonus.

Eleven “Winners” are as follows: 504,000 DIVI is the total amount paid out each week 50% is allocated to a single big winner (252,000 DIVI) 5% is allocated to 10 secondary winners (25,200 DIVI)

If the value of DIVI grows, the lottery bonus will grow too, possibly making it a pretty large amount. For example, if DIVI were US$0.10, then the bonus would be over US$50,000 worth of DIVI each week.

Mechanism:

The blockchain produces a “superblock” each week with these extra awards. In our original whitepaper, we planned block rewards emission and deflation, and when we did, we found it was simpler to include the 50 Divi into that block. That means the missing 50 DIVI per block for a week adds up to 504,000 DIVI. 

The Divi Lottery is Like a Race One exciting thing that most people don’t know is that you may have already won the lottery and don’t know it yet. Whenever you create/earn a stake, you get a “ticket” that compares its hash to previous tickets. So, at any moment, the eleven highest hash numbers are currently leading this race.

Because this ticket is stored, you don’t need to have your wallet actively staking when the eleven bonuses are paid out, but it might be a good idea to keep it running to have more opportunities.

What Value Does the Lottery Give to the Divi Ecosystem?

This goal is not just to reward our stakers but to get more people to keep their DIVI in the network and support it with more staked wallets. Keeping DIVI staked and off the exchanges is better in many ways, such as adding stability to our price, which is a significant requirement for mass cryptocurrency adoption.

A key concept is what I call “holdability.” In the future, cross-currency swapping will occur with the push of a button. So why will people choose to hold DIVI rather than other cryptocurrencies? The lottery incentivizes people to hold DIVI by using it to secure the blockchain, rather than swapping out to fiat, a stablecoin, or BTC.

FAQs:

Is this gambling?

No, because while you must have DIVI to participate in staking, you are not required to invest or take any risks to win a lottery.

You are automatically entered after accumulating stakes, and this is an innovative approach to recognize those who support the Divi network. 

What if your DIVI is on an exchange?

You can’t participate in the lottery with DIVI on an exchange. Instead, the exchange may get the lottery bonus if they’re staking your coins and would unlikely give them to you. It is another good reason not to keep DIVI on an exchange for long.

The original article author by Geoff McCabe, co-founder of The Divi Project

Minor updates and edits by TheVoice