All tokens should have white papers. Without knowing where the team heading, it’s impossible to actually make it there and it’s even harder to get the community to follow. This is why we spent a lot of time thinking, writing, rewriting, editing and reviewing our white paper… And it was during a mundane afternoon after another dozens of coffees that we finally got to the stage when we finally felt confident putting it out there.

It has been a challenging path and, admittedly, at times so frustrating that we were ready to throw our laptop out of the window and pretend no one was at the office when a concerned citizen came up to hand it back to us. Yet, it is only through solving those problems that we can we now say that we feel confident with taking this experience into the future.

Here are the basic decisions we made, so let us explain the reasons and how we are thinking about these with the community input.

ERC20

Like many other tokens, LUCK is built on ERC20. We had doubts about this decision as building a token on this protocol inevitably associates us with an ICO (and as many of you know, we are not looking at this as a way to raise millions and, therefore, inherently, don’t apply with the strict ICO funding rules).

Nevertheless, there are fundamental principles about ERC20, which puts it ahead of many other protocols and allows us to built a ‘better quality’ token . ERC stands for Ethereum Request for Comments and is an official protocol for some of the most established networks in the world.

The proposal ERC20 defines a set of rules which need to be met for a token to be called an “ERC20 token” that need to be followed in order for ERC20 to be able to benefit from some of the most established systems in the world giving us access to wallet and API integration on a much more advanced level than most networks.

In short — using this protocol opens doors that no other protocol does and allows a simple interface through established and wide-spread solutions (such as Metamask) that is easily available to our end customer no matter how involved they are in the crypto scene.

Smart Contract Mechanism

Our smart contract is built for the future, but is effective under the current circumstances. It specifies when and how the tokens should be issued. Right from the start, it specifies an initial token supply that is distributed amongst the early adopters (some of you must have already got your LUCKY tokens already).

It is then programmes to give away the right supply of tokens according to the rules, releasing the funds into the current economy to make a sustainable use case for the community.

Initially, this is done on a yearly basis and is distributed into three categories:

Increased token supply on a yearly basis. Instead of releasing tokens all in one go, we want to make sure that all our new users have the chance to participate in the community with equal basis. There will, therefore, always be more tokens issued into the system to gradually increase the token supply.

Operation payment mechanism — At this very moment, LUCKY.io is run by a team of people and is funded through external investment. However, as the community gets more established and the token takes off, this process will be automated and the operational costs will automatically be taken out of the total supply. This cost is automatically deducted out of the total turnover and guarantees the running of our future truly de-centralised casino.

Mining — this includes both the cost of mining and the turnover that is generated through mining, which players participate in through gameplay. This self-running mechanism guarantees the giveback to the community and true de-centralisation where every participant gets rewarded for spending their time on our platform, while keeping the value of the token and, therefore also keeps a stable value of the whole ecosystem.

Every activity on the represents mining in the LUCKY.io. So every spin is a part of the total mining where a part always goes back to the the total turnover, which increases or decreases depending on the total input by the players. Here’s a brief breakdown of how this mining mechanism works:

players power (gameplay generated by the payer) / total power (gameplay generated by all players) = r (mining power generated to the player)

r * total released tokens / day = mined tokens given to the player.

By using this mechanism LUCKY.io can generate a system where it’s in the players interest to both use and hold token, giving it a stable growing value and turn it into a valuable commodity and investment.

The Outcome

As a result, with LUCKY.io players become the house, making it a self-sufficient system where everyone in the community benefits from being a part of the network. Just like with a regular casino, the house gets wealthier for every win, but unlike with a regular casino, the players are the house.