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Have you participated in the PoolTogether lottery? You could have free money in your wallet

If you’ve ever used the PoolTogether cryptocurrency lottery platform, based on the Ethereum network, you might have “free money” in your wallet. The platform granted its users the recently launched POOL governance token, which is priced at around USD 26.

Through a statement published on Medium, Nahuel Burbach, PoolTogether head of product and communities for Latin America, states that “the POOL token exists solely to govern the PoolTogether Protocol”, granting voting power on decisions that affect the platform in the future.

However, POOL is already available on decentralized finance platforms (DeFi) such as Uniswap and 1inch. The value of the token in the market has oscillated between USD 12.9 and almost USD 50 during the day of this Thursday, February 18, in data from CoinMarketCap.

The statement explains that the total supply of POOL will be 10 million tokens. Of that total, 14% is distributed among the platform users who have deposited at some point, until last January 14. In total, 1,400,000 tokens would be allocated to 17,071 addresses that met that criteria. But currently, only 2,783 addresses have the token, Etherscan shows.

“14% of POOL’s supply is a weighted distribution to all depositors based on the duration and amount of their deposit,” the press release states. That is, each address receives a different amount of the platform’s governance token.

This user received the equivalent of more than USD 500 in POOL. Source: screenshot.

For example, a case of a user of this lottery came to the writing of CriptoNoticias, who received 24.23 POOL. This equates, based on the current price recorded on CoinMarketCap, to more than $ 500 while this article is being written.

However, for a user to be able to withdraw those funds and exchange them in one of the aforementioned markets, the user must bear the commission costs on the Ethereum network, where the token operates, around USD 30 currently. In addition, the person must pay the commissions for operating in the market, which in Uniswap is around USD 70 at the time of writing this note.

Although those interested can redeem in this way, the idea of ​​the creators of PoolTogether is that users keep their respective POOLs to participate in the governance of the platform and that it be as decentralized as possible.

How the POOL token is distributed

In a first stage, only 42.46% of the total supply of POOL is being distributed. In addition to what is intended for users, this includes 12.44% that goes to the initial collaborators of the PoolTogether team; and 7.52% to investors from PoolTogether Inc, the company behind the platform. Neither of the two previous groups will be able to move their funds during a year.

Another 5% of the total POOL will be assigned to users who participate in the lottery during the first 14 weeks, there will be 2.5% for new user education programs and 1% will be distributed among the addresses that participated in the first governance votes of the platform and had a deposit on the platform.

The remaining 57.54% is part of PoolTogether’s treasury and it will be distributed in the future according to the rules defined by governance through the ownership of POOL, the text underlines.

PoolTogether is an Ethereum-based protocol that works like a “no-lose lottery.” In this application, the user participates by buying tickets with stablecoins such as DAI or USD Coin. You can also enter by depositing the tokens of the DeFi Compound and Uniswap platforms.

PoolTogether’s lossless system arises from the liquidity provided by the participants themselves. The funds deposited enter to provide liquidity in the DeFi protocols and the interest generated is what makes up the pot to be won each week. When a user does not win in a drawing, the funds wagered are returned to them to participate in the next round or withdraw them, if they wish.