1 USDN = 1 lottery ticket. More tickets means a greater chance of winning.
Grand prize = 1 million USDN.
The lottery is held when 10 million USDN are entered into the drawing.
1 million USDN goes to the winner and 9 million USDN are swapped for SURF to be distributed as consolation prizes.
Start a new lottery with the same rules after the lottery ends. Keep taking millions of USDN out of circulation. Repeat until the problem is solved.
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In fact, the lottery is a very old concept of balancing the supply and demand for currency. I first saw this idea in RealSolid’s MicroCash project.
Why not introduce a lottery into the Neutrino system as an automatic burning/reserve filling mechanism?
The lottery should take place every block and participants should receive, f.e., 60% as prizes with a 30% chance of winning. Chance of winning and return percentage should depend on peg and BR.