Background

In June 2022, Gelotto airdropped the Gelotto token (GLTO) to owners of various Cosmos/IBC assets. GLTO has a variety of uses:

• Hold at least 10,000 GLTO in your wallet to receive a monthly distribution of Gelotto Keys (GKEY), a low-supply asset for use in the first annual grand prize game

• Play Gelotto lottery games that feature the GLTO token

• Exchange GLTO (through the ticket system on Gelotto's Discord) to receive chips for community cash poker games on Club GG (Club ID: 540776)

• Buy, sell, and provide liquidity on Osmosis Dex (Pool #778 - GLTO and GKEY rewards to liquidity providers) and Wynd Dex (JUNO/GLTO - WYND rewards to liquidity providers)

• Coming soon: Spend GLTO to create a lottery or NFT raffle having customized parameters

Long-term, GLTO is intended to be used not only as the primary currency of the Gelotto platform, but also as a revenue-sharing and governance token.

To this end, Gelotto is announcing the roll-out of the revenue-sharing aspect of the GLTO token: Staking-as-the-house

Summary

Staking-as-the-house allows holders of the GLTO token to participate in the Gelotto platform by playing the role of "the house" (a colloquial term used to refer to casinos, or in this case, to the Gelotto platform). When holders stake their GLTO as-the-house, this pool of GLTO becomes the house's money, against which games of chance are played. When a game against the house is won, GLTO is taken from each of the stakers (proportional to the amount of each stake relative to the total amount of GLTO in the pool) and sent to the winning player. When a game against the house is lost, the GLTO that was bet by the losing player is distributed to each staker (proportional to the amount of each staker's stake, as above).

Statistically, because the odds in these games of chance favor the house, Staking-as-the-house should result in revenue for each staker over time, with the amount of revenue varying depending on the number of games played and the outcomes of those games. Essentially, Staking-as-the-house allows owners of the GLTO token to play the role of part-owner of the Gelotto platform, receiving a share of Gelotto's revenue and profiting as Gelotto profits.

Details

• GLTO that is staked will be secured in the Staking-as-the-house smart contract

• Initially, the Staking-as-the-house contract will be funded with GLTO from the Gelotto developer wallet, and games will be limited to small bets to test functionality and enable bugs to be found and addressed

• As testing progresses, access to the contract will be opened to community members, then the general public, and allowable bets may be increased to a maximum amount based on the total amount of GLTO stored in the contract

• Stakers will be able to select a percentage of their earnings to be added to their stake and a percentage of their earnings to be set aside to be claimed and sent to their wallets.

  • This flexibility avoids the need for stakers to withdraw their stake to access earnings

  • Additionally, setting aside a portion of earnings in a separate claimable rewards pool isolates that amount of GLTO from future losses in the event that significant games against the house are won

  • The rewards accrued by a staker are determined using a series of snapshots taken when deposits are made and games are played to determine the incremental rewards for the staker for each time that an event occurs. This innovative method avoids the need for Gelotto to use a separate staking or liquidity pool module to continuously determine staker assets or issue separate tokens that represent shares in the Staking-as-the-house pool. (Gelotto intends to generate a whitepaper that presents the details of this method.)

• There will be a limit on the number of times a user may withdraw within a time period (such as once per 24 hours) to reduce large fluctuations in the amount of GLTO in the contract.

  • This will reduce inaccuracies in calculations based on the total pool value (such as limits on bets, or unusual distributions if GLTO is added or removed while a game is being played)

  • In the event that a user withdraws GLTO during a game (such as while a portion of the GLTO is locked in a smart contract for a game), any generated revenue from that game will be set aside as claimable rewards rather than added to that user's stake

Benefits

• GLTO is non-inflationary (fixed supply of 420,690,000). Earnings from Staking-as-the-house are real yield representing actual revenue of the Gelotto platform

  • The initial amount of yield is not expected to be large while the Gelotto platform is small, but small amounts of revenue generated from continuously-available games have a tendency to accumulate

  • As the Gelotto platform grows, new games are added, new networks and means of access (such as mobile apps) are added, and so forth, revenues are expected to increase. Additionally, Gelotto plans to allow approved third-party games to access Gelotto's staking-as-the-house functionality to enable third-party games to be played using GLTO

• Future plans include expanding the Staking-as-the-house contract to include governance aspects for the Gelotto platform, functioning as a Gelotto DAO

• Staking of GLTO tokens in the Staking-as-the-house contract is expected to provide greater price stability for the GLTO token

• Staking-as-the-house funds may also be used creatively, such as to purchase Gelotto lottery tickets (possibly by governance) to enhance prize pools, with any winnings distributed to stakers

Conclusion

The Gelotto team (and the Gelotto community as a whole) is especially excited about the release of Staking-as-the-house functionality for the GLTO token. Staking-as-the-house opens a revenue-sharing opportunity through which GLTO holders may play the role of part-owner of the Gelotto platform. The availability of this option incentivizes community members to not only purchase and stake GLTO tokens, but to drive traffic to Gelotto to increase potential revenue.

Staking-as-the-house represents an innovative use of the GLTO token to bring real, non-inflationary yield (actual profits of the Gelotto platform) to stakers, with future governance aspects of the Gelotto platform planned. Stay tuned for the formal release of this feature, and for future updates as Gelotto continues to build.