PoolTogether is a protocol for no-loss prize games on the Ethereum blockchain. The protocol:
1) Enables developers to build their own no-loss prize games 2) Offers governance-managed no-loss prize games
Prize games are pools of funds whose accrued interest is distributed as prizes. The concept is well-established and otherwise known as "no loss lotteries" or "prize savings accounts". All prize games created by the protocol share the same key characteristics:
No loss of deposited funds
Ability to withdraw at any time
Fair prize distribution according to a prize strategy
Prize games can be differentiated in the following ways:
The yield source the prize pool uses to generate no loss return
The prize strategy used to determine frequency and distribution of prizes
The additional rewards offered by the prize pool
The asset type the prize pool accepts for deposits
The fairness parameters
The PoolTogether Protocol governance serves two primary functions.
Governing the prize pool creation tools
Governing a sub-set of prize pools
The protocol governed prize pools appear on the official PoolTogether App. Governance is currently the core PoolTogether team, but very soon governance control will be distributed amongst protocol stakeholders.