Zethr.io – Be the House!

Zethr.io – Be the House!

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Background

The onset of the “Pyramid Age” began early in 2018 with the first open-source pyramid, Proof of Weak Hands setting the craze in January. Two PoWH contracts were exploited until it settled on Proof of Weak Hands 3D, the current Great Pyramid. In the space of a few months, the clones began appearing, with the first being PoWL, the 400 ETH gambit of PoWM and no less than 20 more clones popping up within the next 7 days. Needless to say, all these clones failed as panic selloffs occurred when the value of tokens began to freefall due to investors taking profits and causing mass crashes.  This placed investors to future projects, at a higher probability of incurring losses in investments.

Zethr sets out to be the future, achieving longevity and ensuring engagement through key features such as a house bankroll that is consistent in paying out profits to its toke holders, “choose-your-own-dividend rate and betting games that are interactive. These features align Zethr with succeeding where its predecessors failed.

Essence of Zethr

Zethr is, in essence, a gambling-powered-dividend-pyramid powered by tokens in a community-driven decentralized betting platform, where the value of tokens appreciates as supply increases and decreases when supply goes down. Bear in mind, Zethr does not guarantee that you become rich although it is a possibility and it is not a regulated security vehicle nor is it a lending platform nor can it be considered stock.

These four phases are essential to the success of Zethr:

1) ICO Fair-Launch Phase

2) Dividend Auction Phase

3) Pyramid Launch Phase

4) Ongoing Development of Casino Games.

Phase 1 – ICO Launch Phase

The Initial Coin Offering (ICO) of Zethr (ZTH) tokens gave the wider community an equal opportunity to invest and it prevented the pump’n’dump which is the classic pyramid-clone death cycle.

The price/value formula below shows how the instant dump after the ICO was prevented:

Pico represents the ICO token price, tcurrent represents the total number of tokens that are currently in supply, tico is representative of the number of tokens sold in the ICO and tr denotes the price change per token that is bought in the pyramid.

There is no premine and the token price never went below the Pico which is the ICO starting price. The casino bankroll was funded from the dividends collected during this phase but during Phase 3, regular dividend payments were commenced. It is imperative to understand though that the buyer’s selected dividend percentage would signify the fee incurred when tokens are bought and sold.

The major advantage of participating in the ICO was that of safety. For instance, should a buyer select 2% as his/her dividend % which is the lowest amount that could be chosen, the maximum outcome of losses incurred due to the floor price created by the ICO, would only be 3.96% of his/her investment. One may want to compare this to the PoWH 3D for satisfaction of peace of mind.

Phase 2 – Dividend Auction

This commenced directly after Phase 1 where 8 dividend cards were available for purchase, i.e. one “master card” and one each of the dividend percentage buy-ins described in Phase 3 below. The key feature of this phase is similar to the “hot-potato” style ga

mes that are seen in the crypto community, where the owner of each car would receive dividends from token buys.

Essentially, the current owner of each dividend card is given 0.5% off all buys, corresponding to its dividend percentage and each dividend card can be bought by anyone for 1+x times the price of the card, x signifying the dividend percentage of the card.

To break it down, a 10% dividend card increases in cost by 10% each time it is purchased with 50% of the “profit” generated to the previous owner and the remaining 50% sent to help fund the casino bankroll.

For example, 10% Dividend:

Card Previous Purchase Price: 1 ETH

Current Price: 1.10 ETH (10% Increase)

Bankroll Profit: 0.110 ETH

Previous Owner Profit: 0.110 ETH

Phase 3 – Pyramid & Casino Launch

Directly after Phase 2, the Pyramid was officially launched and the Casino was opened.

It has already been mentioned that the formula in Phase 1 dictates the starting value of each token which is similarly to the scaling of other pyramid schemes. The difference though is that the minimum buy-in dividend is 2% plus a 1% fee to the

Dividend Card Holders, resulting in the actual cost of the token being 3% higher than the current price of the token, but the 1% fee does not apply when selling, resulting in a realized cost down to 2%.

The second difference between this pyramid and other common pyramid protocols is the inclusion of the variable dividend buy-ins. What this means is that a user can specify the dividend percentage he/she wants at the time of purchase, which is set in the contract, storing it as the “average dividend percentage” that the user receives as dividends or when the tokens are sold.

A “backend token” is generated whenever tokens are purchased, this token is basically irrelevant to the user but it allows for the calculation of dividend payouts. For instance, when a user purchases 100 tokens at a 25% dividend rate, 2.5 times as many backend tokens are generated than a person who purchases 100 tokens at a 10% dividend rate. This is significantly more strategic, allowing a user to choose whether he/she wishes to “average down” or “average up” the dividend percentage average.

The last feature of the pyramid is the masternode system which is activated once a user has acquired at least 100 tokens. With this system, a user receives 25% of the dividends that are normally allocated to other token holders, whenever other users are using his/her masternode link.

Finally, we come to the Casino which are games that can be played using the tokens, with no fee and no cost to transfer the Zethr tokens. Each game would have a slight house edge which would allow the casino to accumulate tokens as the project grows. The minimum token supply increases as the bankroll is the one holding the tokens, thus raising the price value of the tokens. All dividends from these tokens held by the house are consistently reinvested and the profits are distributed to all the existing token holders.

Phase 4 – Ongoing Development

All games, are on-chain and are using pseudo-random number generation. This prevents the bet-and-revert style exploitation as well as the blocking and betting from smart contracts.

To prevent mining farms from re-mining blocks to find winning bets, the maximum winnable amount is set just low enough so that it is not profitable to do so.

Eventually, as the project progresses, the pseudo-random number generation would be moved to Oraclize, allowing the maximum win to raise indefinitely as the house bankroll increases.

To create a seamless casino experience, Zethr plans on developing games using off-chain logic and on-chain verification such as Ethcrash.

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