⚙️Main rules and concepts

Key rules

Cosmos Millions is a decentralized prize-linked saving protocol. At any point in time, the goal of the protocol is to abide to the following rules:

(1) Community governed

• Lum Network stakers govern the protocol evolution

(2) Safety of deposits

• Users' deposits are safe (in the context of the protocol itself) and can be withdrawn at any time.

• Neither the Cosmos Millions protocol nor the Lum Network on which the protocol runs can assure that deposits are safe on their native blockchain once they get staked (e.g: validator slashing).

(3) Yield based Prize pool

• Prizes always come from yield generating processes such as staking assets.

(4) Prizes draws are randomized and fair to everyone

• Any depositor gets a fair shot at winning if the minimum deposit amount for a Pool is reached.

• Depositors earnings can be estimated based on the Pool configuration and using The Law of Large Numbers.

Interchain lifecycle

1. Users transfer tokens to the Lum Network

2. Users deposit tokens to a Millions Pool

3. Assets are transferred to the native chain

4. Assets are delegated on the native chain

5. Staking rewards are claimed on the native chain

6. Staking rewards are transferred to the Lum Network

7. Prizes are distributed to the winners

8. Prizes can be sent by the winners back to the native chain (or anywhere else for that matter)

Millions - Interchain lifecycle

Pool lifecycle

1. Users deposit tokens into a Pool

2. The Pool triggers draws based on the Pool configuration

3. The available Prize Pool is computed based on staking rewards and other sources such as the remaining amounts from previous draws

4. Each Draw select winners among the depositors according to the Pool configuration

5. Prizes are sent to the winners and fees are collected

6. Remaining amounts are held by the Pool for the subsequent Draws

Millions - Pool lifecycle example

Protocol Parameters

Most of the protocol parameters are only here to prevent wrongful and/or harmful Pool creation or update. Their goal is mostly to ensure the safety of Pool management while still granting the ability to change them over time using a more rigorous process.

The following protocol parameters can be updated via Governance proposal with the utmost care.

Parameter	ID
Minimum deposit amount (enforces that an amount exists on each Pool)	min_deposit_amount
Maximum prizes types	max_prize_strategy_batches
Maximum prize type quantity	max_prize_batch_quantity
Minimum time (delta) between draws	min_draw_schedule_delta
Maximum time (delta) between draws	max_draw_schedule_delta
Prize expiration time before clawback	prize_expiration_delta
Lum Stakers fees percentage	fees_stakers
Minimum time (delta) to deposit for a draw	min_deposit_draw_delta