⚙️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Users' deposits are safe (in the context of the protocol itself) and can be withdrawn at any time.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
Users transfer tokens to the Lum Network
Users deposit tokens to a Millions Pool
Assets are transferred to the native chain
Assets are delegated on the native chain
Staking rewards are claimed on the native chain
Staking rewards are transferred to the Lum Network
Prizes are distributed to the winners
Prizes can be sent by the winners back to the native chain (or anywhere else for that matter)
Pool lifecycle
Users deposit tokens into a Pool
The Pool triggers draws based on the Pool configuration
The available Prize Pool is computed based on staking rewards and other sources such as the remaining amounts from previous draws
Each Draw select winners among the depositors according to the Pool configuration
Prizes are sent to the winners and fees are collected
Remaining amounts are held by the Pool for the subsequent Draws
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.
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
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