1. When you make a bid, you become the leader and the timer resets.
2. When the timer runs out, the last bidder earns half the pot and a new round begins.
Minimum plus safety:
How does this work?
When you place a bid, you become the new leader and the countdown resets. Your bid contributes to the pot. When the timer runs out, the final leader receives half the pot as earnings, and a new round begins with the remainder as the initial pot.
Is this secure?
Yes, our code has been audited and tested to ensure that money flows from bidders to winners as intended. There are no backdoors, self-destruct functions, or other mechanisms for foul play. We encourage you to read the smart contract source to verify.
How long is the countdown?
By default, the timer resets and begins counting down from 24 hours whenever a new bid arrives. However, the duration is reduced by 10 minutes for each ether in the pot, down to a minimum of 1 hour. For example, if there were 18 ETH in the pot, the timer would begin at 21 hours, and if there were 150 ETH in the pot, the timer would begin at 1 hour.
What is the minimum bid?
You must bid at least 0.1% of the current pot to become the new leader. If your bid is too low, it will still feed into the pot but you will not become the leader. To mitigate this risk during periods of high activity, we also provide an option to bid 1% more than the minimum, which is high enough to account for 12 minimum bids being processed before yours.
What are custom bids for?
If you're willing to bid a large amount, you can substantially increase the size of the pot in a single transaction, thereby raising the minimum bid and driving out participants with smaller wallets. Custom bids can also be used for additional safety over the minimum bid during busy periods.
How do I collect my earnings?
When you click on the withdraw button, you'll initiate a special 0 ETH transaction that will call the contract's withdrawal function and transfer your earnings to your address. Note that earnings from the current round will not appear in the display before the next round has started, but they will still be accounted for in a withdrawal.
How is this self-sustaining?
Half of the previous round's pot is used as initial funding for the next round's pot. Even if there were only a few interested parties, it would take months or possibly years of persistent daily bidding to fully drain the pot. As long as there is interest and the Ethereum network is alive, prizes will continue to be paid out on a regular basis.
How are bids allocated?
When the contract receives a bid, 80% goes into the pot and 20% is put into a fund supporting other community projects like this. Unlike many recent Ethereum pyramid schemes, a reverse Ponzi scheme requires initial capital to attract interest. Do you have your own devilish variant in mind? Contact us about funding for your initial pot.