Follow the money.  There is no opt out in your system.  It would be break even on average and thus materially change nothing. 

It would just be like a government taxing everyone and then randomly giving it away proportional to how much you've been taxed. 

You exclude an entire class of uses who are practical and would never play the lottery but may own shares in a lottery. 

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I agree with exactly what you said - 'break even on average...like government taxing everyone and randomly giving it away based on how much you've been taxed' I think that's brilliant!

That's the whole point of gambling. Never mind Break Even, People are willing to lose a lot of EV to play lotteries and casino games for the random chance to win!

My suggestion creates a frictionless lottery! (Nothing lost to shareholders, charities or operating expenses!)

Best of all there's nothing to justify charity wise like a normal lottery, because it's just re-distributed inflation.

In a normal lottery it's less than break even, the coins you've bought (lottery tickets) are being randomly given away, minus 50% in fees! So the whole company is bankrupt and a new alt-coin (lottery) starts again the following week.

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Maybe it's easier to see if I calibrate an example of my POS exactly to a current lottery.

My POS guarantees the exact same payouts as the current big lottery, the disadvantage is that in mine your can't choose your numbers as the coins have a value pre-assigned, the advantage is mine is frictionless.

$100 million goes into the normal lottery this week
$100 million goes into my lottery this week

In the normal lottery $50 million is randomly awarded in prizes & $50 million is lost on various running expenses. So in a normal lottery you either won a prize or lost your money.

In my lottery $50 million is randomly awarded in prizes & $50 million is left over because it's frictionless. So in my lottery you had the same odds of winning exactly the same prizes for exactly the same cost, except if you lose your ticket is still worth 1/2 it's purchase price! (Which you can sell or keep for next weeks draw.)

Can you see how after a few weeks my lotteries jackpots would get bigger & bigger? And my losing lottery investments would be worth more and more each week too. It's the same as the current model, it's just frictionless.

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The calibration can be tweaked but I simply tried to calibrate it closer to Bitcoin inflation, because at that level with fairly little new demand your coins or in this case frictionless lottery tickets should retain or increase in value while still offering exciting prizes.

Edit: My calibration was also designed for exactly the people you think it might exclude, people who want to own shares in a lottery, because the lower the % weekly payout the more of your ticket value your coin will retain, and the more people that are attracted to a POS frictionless lottery with a low % weekly payout the more valuable the alt-coin and your investment will become. Obviously the art would be finding that level that is exciting to gamblers and attractive to investors too. (Even though gamblers will inadvertently be investors and vice versa)

I hope I can sway you on this one.

Good idea to allocate shares in genesis block as jackpot rewards, as there was not too much init jackpots in prize pool to back up the bets. This will be helpful to make this DAC popular I think.

But I didn't get your idea in the brackets, coin is decomposable, ticket might be better.

No I mean I think you should do a normal lottery like you are going to do.

But I mean another idea is to have POS alt-coin where your coins are the lottery tickets.

Maybe release a billion POS coins that are 'coloured coins' and not divisible.
(As in each coin is identifiable. 1, 2, 3... Up to a billion.)

Then every month 8 million new coins are created but they are not given to miners or to everybody equally, but instead they are the lottery prizes.

This way you don't have to ever buy a ticket.
Just buy however many coins you want and keep them in your wallet. (Everybody will hoard their coins pushing up the price.) Then when the lottery draw happens, and the winning number is 76890,
And you have coin 76890 of 1 billion in your wallet then you win some of the new coins.

(As long as demand for the lottery DAC/alt-coin increased by at least 10% a year the coins in your wallet won't lose any value even if you don't win. If the Alt-coin is popular your coins may be very valuable even if you don't win whenever you want to sell them.)

Ie. This is just an application of POS share systems.

The goal for Bitshares would be to create the dominant marketplace/exchange where they are traded.

Bitshares Music would be the  Itunes/Youtube of this space and if the POS's were denominated in something like BitUsd all the better.

If people are willing to mine other alt-coins but get paid in POS blackcoin why not create a third party operator/service through which you can route your youtube, iTunes and amazon revenue payments and get paid in Bitshares.

If it can be made more private than the traditional payment methods there should be a market for it.
Plus the fact that you can convert to BitUSD/BitGold etc. should make it more attractive than any other POS trying to pull this off.

One of those air-drop coins should target pre-teen girls and make their coin redeemable for crappy music, cheap fashion items, and utterly meaningless knick-knacks. That would get the market going in a hurry.

  You joke but but if One Direction released 'One Direction POS Coin', where you got a discount for paying for merchandise and tickets with it and where each coin was also a lottery ticket that could win you signed stuff, backstage passes and a day with the band etc. I imagine it would be worth a lot and crypto-currency would spread pretty quickly in that market.

Edit: Even if they don't have those advantages I predict in the next year we will see at least one of the following, - One Direction/Justin Bieber Coin

This is exactly what PTS and AGS holders are:  A demographic MUCH more likely to be good supporters.  These block chains are like mailing codes that let you target your shares to the people you want to reach much, much, much more precisely than using Silicon Valley mailing codes!

It's like dropping shares with terminal homing DAC-savvy supporter seekers on them!

As far as the value of offering PTS/AGS holders stakes in coins for the main reason that they'd be a supportive demographic, I'm not convinced of that yet, unless the DAC is quite complicated? I think awarding coins to Dogecoin holders (I'm not one of them) if you wanted a viral marketing and a network effect boost seems like it would make more of an impact.

Edit: Hmm, having said that, I can see a coin that needs to start out with a wide distribution from a solid, intelligent active community, (which is hard for a POS) such as Truthcoin for example would be better off distributing shares to PTS & AGS holders than anyone else.  (Personally I'm not investing in PTS/AGS because I think many 3rd parties are going to include AGS/PTS though but because the DAC's Invictus and partners are already working on themselves are so exciting and seem so well put together that I think they'll have the quality + first mover advantage + network effect to deliver Bitcoin-like dominance in a lot of key industries/areas.) 

Lets address the issues here:

1) front running ... this particular issue does not apply given my matching algorithm.  The person placing the order will get the same price regardless of what any other party does.   In fact, one could argue that the blockchain earns revenue by intentional front-running and that the shareholders are the ones to benefit from it.   


As you can see here... if you see a low ask... you cannot front run it by placing a higher bid to be the first in line to get that low price.   If you see a high bid, you cannot front run it either.   

2) reordering .... this particular issue is not possible, because orders are sorted/matched deterministically...

3) your only control is excluding bids or asks.  Fortunately the market making algorithm also makes this form of manipulation irrelevant as well because it will not effect the price people get for their orders.   Remember, you get what you asked for or nothing.  When you place a bid the assumption is that the offer is good for at least a couple of blocks and therefore don't trade if you need depend upon high frequency noise.   

The result of this matching algorithm will be a wider bid/ask spread but a more meaningful one.

Awesome! 

  Great stuff! 

You gave a great explanation on what an exciting improvement Bitshares is vs. Bitcoin & some of the numbers involved, but besides saying 'using proven business models...implemented in more efficient and trustworthy way' I don't think you've given them the same appetite whetting explanation/example with regards to what an exciting improvement DAC's will be over real world counterparts.

Obviously it's implied but even just mentioning specifically as you do in the opening of the Bitshares videos, something like 'imagine the potential savings in salaries, office space, equipment, utilities and other expenses plus the reduced opportunity for fraud, government interference and seizures' and then even better if you could give a specific example. 

Well remember that with TAPOS the chain with the most votes piled on is the winner no matter what. Automatic "exception" mechanism for if forks happen due to bad directors.

Edit: Ok cool, yeah just read up on it, the 51% attack isn't really a problem with TAPOS.