Ethereum core developers will soon be able to get a new source of funding: a blockchain lottery.
Decentralized lottery protocol Megapot said Thursday that it is partnering 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 agreement, users can purchase 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 that 100% of the referral fees generated from ticket sales will be automatically distributed via smart contracts to Protocol Guild-backed Ethereum developers.
The effort comes as concerns have intensified about the sustainable funding of Ethereum’s core infrastructure. While the blockchain underpins billions of dollars in decentralized finance and cryptocurrency trading activities, many developers who maintain the network earn significantly less than their peers elsewhere in the industry, according to Megapot.
Protocol Guild said it has distributed approximately $38 million to Ethereum contributors since 2022 through donations and token pledging initiatives, but estimates that maintaining and scaling Ethereum could require between $30 million and $60 million annually.
“Every token, NFT or criminal 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 speculating and contributing. They can do both.”
The model mirrors traditional charity lotteries, such as the UK National Lottery, while moving the chain mechanism. Megapot said its programmable referral system eliminates administrative overhead and ensures profits are distributed transparently.
“Getting consistent funding for Ethereum protocol administrators is a critical and growing challenge,” said Trent Van Epps, lead organizer of the Protocol Guild and former member of the Ethereum Foundation. “We’re excited to see how this novel Megapot integration will raise the bar for how applications can support the infrastructure they depend on.”
Read more: The next stage for public good financing in crypto
