Summary
The fifth prize distribution is set to go live tomorrow. Unlike the previous four changes this distribution will be a small change. Total dollars distributed will not be changing. Instead, the same amount of money will be distributed in a slightly different way.
Why is this change being made?
The protocol has seen rapid growth in the last 7 days. Deposits are now at $47 million, about $10 million higher than ever before. Additionally, the fixed OP rewards on the Optimism network are driving larger depositors than ever before.
Due to these changes, we are seeing a very high % of dollars distributed going to a very small number of wallets. On average, between draws 277-286, 59.5% of all prize dollars went to the top 5 wallets for the draw. Compare that to draws 254-263 which saw only 22.23% of all prize dollars going to the top 5 wallets.
The goal of this prize distribution adjustment is to get unique wallets winning while maintaining a āgrand prizeā over $1,000 per day. The thesis is that 1) large depositors are primarily driven by OP incentives and therefore donāt care much about winning and 2) smaller depositors will be more likely to stay after OP incentives end if they win something during the rewards period.
Changes
Current prize distribution is shown here:
New prize distribution:
Expected Outcomes:
- Increase in average prize size
- Increase unique wallets winning on Optimism
- Small decrease in total awarded prize money due to more dropped prizes
- Decrease in % of total daily prize money going to top 5 wallets
- Decrease in % of total daily prize money going to top 1 wallet
- Decrease in % of daily prize money going to depositors over $1 million
. Out of curiosity ever thought of trying the 12228 tier. Feels like that could be some fun for a 10-20c event on polygon some time. Maybe after OP settles down.