Ethereum core developers may soon have a new source of funding: a blockchain lottery.
Decentralized lottery protocol Megapot said Thursday it is teaming up with Protocol Guild, an independent funding collective for Ethereum protocol contributors, to introduce what it describes as the crypto industry’s first programmable charity lottery.
During the event, users can purchase tickets to a daily lottery through a dedicated Protocol Guild portal for a chance to win prizes from a pool of over $1.1 million. Megapot said that 100% of referral fees generated from ticket sales will be automatically distributed by smart contracts to Ethereum developers supported by the Protocol Guild.
The effort comes as concerns about the sustainable funding of Ethereum’s core infrastructure have intensified. While blockchain supports billions of dollars in decentralized finance and crypto trading activity, many developers who maintain the network earn significantly less than peers in other parts of the industry, according to Megapot.
The Protocol Guild said it has distributed about $38 million to Ethereum contributors since 2022 through donations and token pledging initiatives, but estimates that sustaining and scaling Ethereum could require between $30 million and $60 million annually.
“Every token, NFT or perps trade depends on the tireless work of Ethereum’s core developers,” Megapot CEO Patrick Lung said in a statement shared with CoinDesk. “Now players don’t have to choose between speculating and contributing. They can do both.”
The model mirrors traditional charity lotteries such as the UK National Lottery, while moving the mechanism on the chain. Megapot said its programmable referral system removes administrative costs and ensures dividends are distributed transparently.
“Getting consistent funding for Ethereum protocol managers is a critical and growing challenge,” said Trent Van Epps, lead organizer at the Protocol Guild and a former member of the Ethereum Foundation. “We’re excited to see how this new Megapot integration will raise the bar for how apps can support the infrastructure they rely on.”
Read more: The Next Stage for Public Good Funding in Crypto
