A blockchain lottery plans to turn crypto gambling fees into Ethereum developer funding

Decentralized lottery protocol Megapot is teaming up with Protocol Guild in what the firms describe as the crypto industry’s first programmable charity lottery.

What to know:

• Crypto lottery platform Megapot is teaming up with Protocol Guild in a blockchain-based charity lottery that automatically directs referral fees from ticket sales to Ethereum core developers.
• The initiative aims to address Ethereum’s growing developer funding gap by turning speculative crypto activity into a transparent, onchain funding stream for the engineers maintaining the network.

Ethereum core developers may soon get 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 they describe as the crypto industry’s first programmable charity lottery.

Under the arrangement, users can buy tickets for a daily lottery through a dedicated Protocol Guild portal for a chance to win prizes from a pool exceeding $1.1 million. Megapot said 100% of referral fees generated from ticket sales will be automatically distributed by smart contracts to Ethereum developers supported by Protocol Guild.

The effort comes as concerns around sustainable funding for Ethereum’s core infrastructure have intensified. While the blockchain underpins billions of dollars in decentralized finance and crypto trading activity, many developers maintaining the network earn significantly less than peers in other parts of the industry, according to Megapot.

Protocol Guild said it has distributed roughly $38 million to Ethereum contributors since 2022 through donations and token pledge initiatives, but estimates that maintaining 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 core developers,” Megapot CEO Patrick Lung said in a statement shared with CoinDesk. “Now, players don’t have to choose between speculation and contribution. They can do both.”

The model mirrors traditional charity lotteries such as the U.K. National Lottery, while moving the mechanism onchain. Megapot said its programmable referral system removes administrative overhead and ensures proceeds are distributed transparently.

“Getting consistent funding to Ethereum protocol stewards is a critical and growing challenge,” said Trent Van Epps, the main organizer at Protocol Guild and a former Ethereum Foundation member. “We’re excited to see how this novel Megapot integration will raise the bar on how apps can support the infra they depend on.”

Read more: The Next Stage for Public Good Funding in Crypto

More For You

The new feature integrates SpaceXAI models to deliver real-time market intelligence, personalized signals and portfolio insights directly inside the Gemini app.

What to know:

• Gemini launched “Command Center,” an AI-driven intelligence hub for prediction markets and portfolio tracking.
• The feature uses SpaceXAI models to surface real-time summaries, sentiment analysis and personalized market signals.
• Gemini said the product spans crypto, sports, commodities, economics and politics, tailoring insights based on users’ positions and watchlists.

Crypto Long & Short: Asia’s regulated crypto future

1 minute ago

Disciplined AI agents are the disruptor needed to break the exchange churn model

48 minutes ago

Gemini taps SpaceXAI to build a personalized prediction markets feed

1 hour ago

'Debasement trade’ falls out of favor as inflation fears cool, JPMorgan says

1 hour ago

Asset manager Grayscale delays IPO plans as crypto listing boom loses steam

1 hour ago

VanEck launches first U.S. spot BNB ETF on Nasdaq

1 hour ago

What's next as hot money cycle has gone from crypto to gold to AI to memory

1 hour ago

Bitcoin drops below $73,000 as U.S. strikes on Iran spark $1 billion liquidations

10 hours ago

White House reviews CFTC prediction-market rule as Trump backs federal control

6 hours ago

Samsung units to buy $408 million stake in South Korea’s biggest crypto exchange

4 hours ago

Diverging trends: Ether slides below $2,000 while futures open interest hits record high of 16 million ETH

7 hours ago

Standard Chartered backs $4,000 ether as retail piles into the sub-$2,000 drop

4 hours ago