The No Loss Lottery is a Savings Account with weekly drawing for cash prizes.
The origin of the No Loss Lottery is with PLSAs
Regular Savings Accounts versus Prize Linked Savings Accounts
The regular savings account is becoming very unpopular in the Legacy Banking World because the annual APR for the typical savings account is 0.25% . What this means in dollars and cents is for every $100.00 in a savings account the interest payment for one year is 0.25 dollars or 25 cents. That’s a pretty low rate of return, so low as to be laughable. This means a 4% APR in another investment vehicle is 16 times greater, 1600%, even at a still low 4%.
Prize Linked Savings Accounts
But then someone had the idea to have a lottery every week just for people with savings accounts, where the amount of the prize was many times greater then the minimum deposit, every week! So for a minimum deposit of $100.00 you have the chance to win a $250 dollar prize 52 times a year!
The contrast between depositing your $100.00 and earning 0.25% or 25 cents per year, versus the chance to win a prize of $250.00 made these no interest prize possible savings accounts became very popular.
Banks advertised them as the smart way to save, or smart savings accounts SSAs. The accounts preserve your money like a regular account, but offer the chance for big cash prizes like a lottery!
Interestingly enough banks that didn’t offer them challenged the legality of these accounts, and eventually banks and depositors petitioned their legislators and they were legalized. Now there is a specific state law making these new Prize Linked Savings Accounts legal in 38 of the 50 states in the USA. Interestingly enough, while this type of savings account is referred to legally as a Prize Linked Savings Account or PLSA. But the marketing material calls it Save to Win.
How do the banks do it?
The banks take all the deposits into these special accounts and pool the interest and then give it out as weekly prizes.
The cryptocurrency version of Prize Linked Savings Accounts.
The cryptocurrency version of a Prize Linked Savings Accounts is a *yield farm investment pool. The investors deposit their money in a pooled project account, whose administrators assign each account a number, one number for easy token deposited in the pool. Then a random number generator is used to select the account numbers of the winners each week.
There is a cryptocurrency version of a PSLA on Cubfinance called the No Loss Lottery. Investors in the Hive Community can send 125 Hive 125 or 250 Leo to the pooled account @nolosslottery. The winners are announced in a post every Sunday. The winnings are then transferred directly to the wallets of the winners!
I am thinking of changing the name of the project to Save2Win or Smart Saver Account. What do you think about the Prize Linked Savings Account? What do you think about changing the name?
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance. He has been a community member for almost four years, and has earned a reputation of 75, on a scale of 0 to 80, which puts him in the top 300 of over 20,000 Hive accounts. He is also a builder, with two current projects: the No Loss Lottery and Easy DeFi, two pooled investment projects with over 13,000 Leo tokens in Total Value Locked between them.
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