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Quick thread on prize savings / no loss lotteries because so many people misunderstand or underestimate them. 
Why are prize savings more than a novelty? The golden rule of investing "the more risk you take on the more potential return". Prize savings is the ONLY primitive to break this paradigm.
Offering an opportunity for 600x returns without needing to risk your principal.
This is an extremely important financial tool for people who aren't already rich.
Articulated well by the National Bureau of economic Research (source: https://www.nber.org/system/files/working_papers/w16433/w16433.pdf)
Articulated well by the National Bureau of economic Research (source: https://www.nber.org/system/files/working_papers/w16433/w16433.pdf)
Why are prize savings not actually lotteries? Mathematically speaking, prize savings are ALWAYS expected value positive. Lotteries are ALWAYS expected value negative.
Is a non-alcoholic beer actually a beer? No.
In fact, research has universally shown prize savings / no loss lotteries redirect money away from lotteries. Citing just one study below.
https://www.hbs.edu/faculty/Pages/item.aspx?research=7617
https://www.hbs.edu/faculty/Pages/item.aspx?research=7617
Prize savings are a new idea.No! London, 1965. Chancellor of the Exchequer introducing no loss lotteries. The program is now has $100 billion deposited and 1/3 adults in the UK hold accounts.
It's just a way for the rich to get richer. No! Large deposits have a chance to win small prizes (relative to deposit)
Small deposits have a chance to win HUGE prizes (relative to deposit)
It offers exponential returns without requiring huge amounts of capital and risk.
Prize savings are better on Ethereum. Yes! Way better, by building a decentralized protocol that is verifiably fair and perpetually growing. It's scalable, efficient, secure, and offers better returns for all depositors. Prize savings is uniquely suited for user ownership.
If building a 10x better version of one of the most important consumer financial primitives in the world excites you then join the @PoolTogether_ community!
Discord: https://discord.gg/hxPhPDW
Governance: https://gov.pooltogether.com/
Discord: https://discord.gg/hxPhPDW
Governance: https://gov.pooltogether.com/
