Up to speed on crypto now?
Great! Ethertote allows you to trade on the performance of one or more of the world’s leading crypto-currencies.
Ethertote harnesses the concept of pari-mutuel betting to pool together all Eth trades across all cryptocurrencies, and the overall pot of Eth is then shared amongst the winners.
Let’s say you wanted to trade 1 Eth on Bitcoin…
It just so happens that 99 other players decided to do the same thing, and they also traded 1 eth on Bitcoin. So incuding yourself, there are now a total of 100 players who have all traded 1 Eth on Bitcoin. Therefore, you now own 1/100th or 1% of the Bitcoin Crypto Pot.
Got all that?
Sticking with the same example, let’s now say that 100 other people each traded 1 Eth on Ethereum, and another 100 people each traded 1 Eth on Ripple, and another 100 people each traded 1 Eth on Litecoin.
…In fact let’s just say that 100 people each traded 1 eth on the top 20 crypto-currencies.
So in this example, we'd have 100 people for each of the top 20 crypto’s, or a total of 2,000 people.
That’s also 100 eth for every crypto, so a total of 2,000 eth in the overall crypto pot.
Still with us?
Right so to recap, you traded 1 Eth on Bitcoin, you own 1% of the Bitcoin pot, and the total overall Crypto Pot is now 2000 Eth
After a week, a “winning crypto” is announced. Selecting a winning crypto is very simple.
- We take the price of each crypto from www.coinmarketcap.com at the start of the week.
- We take the price of each crypto once more at the end of the week
- We calculate the difference in price as a percentage, and this represents the percentage increase or decrease of the crypto.
- Whichever crypto performed the best by having the biggest relative percentage increase over the week is the winner. Simple!
So based on the example we are going with, Bitcoin happened to have a fantastic week and its value increased by 6.42% and is declared the winning crypto on the Ethertote!
Well you recall that you bet 1 Eth on Bitcoin right? Well congratulations, that means you were part of the winning crypto pot!
So what’s next?
Well you own 1% of the winning pot, and the total pot was 2000 eth, so here is how the total pot is distributed:
- 95% of the total pot will be split amongst the players who were part of the winning pot.
- The remaining 5% of the total pot gets sent to the "Token Holder Claim" fund which will be shared amongst the TOTE token holders.
How much do I get?
So you are entitled to a chunk of the 95% right… let’s do the math together...
95% of 2000 eth is 1900 eth.
You own 1% of the winning Crypto pot, therefore you now own 1% of the 1900 eth that’s going to be distributed amongst the winners!
1% of 1900 eth is 19 eth.
Congratulations! You just won 19eth!
Ok that was a nice easy example, but what if the players are trading unequal amounts?
Well lets say that you traded 5 eth on Bitcoin instead of 1 eth, but everyone else just traded 1 eth. Well you traded more than everyone else did on the winning crypto, so quite rightly, you are entitled to a bigger chunk of the winnings.
So using the same example, you traded 5 Eth but 99 other players traded 1 eth. Therefore the total amount traded on Bitcoin was 104 eth.
5/104 = 0.0481
To get a percentage value, you simply multiply this value by 100
0.0481 x 100 = 4.81%
You therefore own 4.81% of the Bitcoin pot. So in terms of your entitlement of a total 1900 eth pot:
4.81% of 1900 is 91.39 eth!
Anything else I need to know?
Well there are some simple rules to follow when trading on the Ethertote:
- Minimum single trade: 0.05 Eth
- Maximum single trade: 10 Eth
- Total maximum number of trades per crypto: 1000
Anyone with a valid Ethereum wallet and enough Eth can trade on the Ethertote during the standard trading period, which is currently set at 154 hours from the start of each game. At the 154th hour, the game is locked to everyone except TOTE token holders. TOTE token holders are able to trade for an additional 4 hours after the standard trading window (up to the 158th hour) After 158 hours the game is completely locked, and no further trades are accepted.
At the 166th hour, the game calls for a random number via www.random.org and the number will be between 1-300. This number represents a “delay period” in seconds and is the waiting period to call the final price of all crypto’s. This added security measure was introduced to maximise the complexity of any disreputable groups attempting to affect market values of any specific crypto-currencies. Whilst it is possible to momentarily cause crypto “price spikes” for a few seconds, it is practically impossible to coordinate this for sustained periods, and prices very quickly tend to revert back to their natural levels. Our “RandomNumber” smart contract is fully open to the public on our github page, so you are able to see exactly how we retrieve the random number. We also discuss how the final price can be independently verified using the CoinMarketCap API.
Once the final prices are in, the smart contract cycles through every "winning" Ethereum wallet address (up to 1000 addresses)in the winning crypto pot, and calculates the percentage owed to each address.
It then starts the transfer process of distributing the 95% of total Eth amongst the winners, and the remaining 5% is sent to the dividend fund. Once all transfers have been made, the game resets, and the Ethertote re-opens and is ready to play once more.
What about the "Token Holder Claim" fund?
All TOTE token holders are entitled to a share of the "Token Holder Claim" fund. This can be claimed once every 12-week claim window period, and the amount owed is correlated to the number of tokens owned. For further details, please visit our Token Holder Claim page.