Leading Ethereum developers could soon benefit from a new source of funding: a blockchain lottery.
Decentralized lottery protocol Megapot announced on Thursday that it is partnering with Protocol Guild, an independent funding collective for Ethereum protocol contributors, to introduce what they describe as the crypto industry’s first programmable charitable lottery.
Under the deal, users can purchase tickets for a daily lottery through a dedicated Protocol Guild portal for a chance to win prizes from a pool exceeding $1.1 million. Megapot said that 100% of referral fees generated from ticket sales will be automatically distributed through smart contracts to Ethereum developers backed by Protocol Guild.
The effort comes as concerns over sustainable funding of Ethereum’s core infrastructure have intensified. While blockchain underpins billions of dollars in decentralized finance and cryptocurrency trading activities, many developers who maintain the network earn significantly less than their peers in other parts of the industry, according to Megapot.
Protocol Guild said it has distributed approximately $38 million to Ethereum contributors since 2022 through donations and token pledge initiatives, but estimates that maintaining and scaling Ethereum could require between $30 million and $60 million per year.
“Every token, NFT, or perps exchange depends on the tireless work of Ethereum’s core developers,” Megapot CEO Patrick Lung said in a statement shared with CoinDesk. “Now players no longer have to choose between speculation and contribution. They can do both.”
The model mirrors traditional charity lotteries such as the UK National Lottery, while moving the mechanism on-chain. Megapot said its programmable SEO system removes administrative costs and ensures profits are distributed transparently.
“Getting consistent funding to Ethereum protocol maintainers is a crucial and growing challenge,” said Trent Van Epps, lead organizer of Protocol Guild and former member of the Ethereum Foundation. “We’re excited to see how this new Megapot integration will raise the bar for how applications can support the infrastructure they depend on. »
Read more: The Next Step in Funding the Public Good in Crypto
