Author: AolottoFoundation
Source: Content Guild Translation
Background
Aolotto is a fully community-driven $1 on-chain lottery protocol, where 100% of profits are returned to the community. In Aolotto’s token model, 50% of protocol profits (equivalent to 20% of total sales) are allocated for holder dividends. Since launch, Aolotto has distributed two rounds of dividends, totaling $2,117. However, we have identified several challenges in the current dividend model:
- Long waiting periods – Dividends are only distributed when the accumulated amount exceeds $1,000.
- Complex tracking for DEX liquidity providers – Since dividends are calculated based on holdings at the time of distribution, additional tracking is needed for $ALT deposited into third-party LP pools.
- Sell pressure post-distribution – Lump-sum distributions often lead to temporary sell pressure, affecting price stability.
Solution
Aolotto is upgrading to a staking-based daily dividend model and removing the $1,000 minimum distribution threshold.
Users can stake $ALT to earn veALT, with dividends distributed daily based on veALT holdings. The minimum staking period is 1 week (7 days), and the maximum is 4 years (1,440 days). The longer the staking duration, the more veALT is received.
veALT is non-transferable, decays over time, and follows the veCRV model. Beyond earning daily dividends, veALT also grants voting power in decentralized governance and spending rights within the LottoFi ecosystem.
With the new model, dividends remain unchanged, but simply holding $ALT will no longer qualify for payouts—only staked tokens will earn rewards. For more details, refer to the official documentation.
Implementation Plan
- Staking launches on March 18, 2025, at 00:00, allowing users to start staking.
- The first daily dividend distribution is scheduled for March 20, 2025, at 00:00 (execution may vary by a few minutes).
- Until March 18, 00:00, the current dividend model remains in effect. If the minimum payout threshold isn’t met, the remaining balance will roll over into the first staking dividend on March 20.
- Post-upgrade, dividends will no longer be automatically sent to wallets. Users must manually claim rewards. The minimum withdrawal amount is $0.1—balances below $0.1 will accumulate until eligible for withdrawal.
The new staking-based dividend mechanism strengthens $ALT’s token model, stabilizing value through staking and supporting LottoFi’s long-term growth. We encourage all community members to participate and benefit from this upgrade. Plan accordingly!
Aolotto Foundation
March 13, 2025
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