Topic: bustadice – Dilution fee lowered to 1% - page 55. (Read 37133 times)

in case I missed it how is this 10% distributed? I mean how much will get each existing Investor form the 1 BTC if we stay with my example? according to his Investment? or any other way?

if I understood you right this 10% bonus for all existing investors is like an early bird bonus

anyway another great idea form you or/and Daniel

good luck

Pretty much[1]. But in exchange when people invest after you, you get their dilution fee. So all in all it should more or less balance out.

One of the main goals of the dilution fee is to provide stability to the bankroll, because it supports pretty extreme leveraging -- you don't want investors who leverage hard (to dominate the % ownership) and then divest as soon as a whale or big player comes (and actually needs that extra amount).

The other nice side effect is as you get diluted over time (assuming there are more and more bankrollers), you at least get compensated for your increasingly diminishing stake. In sites without a dilution fee, as an investor you often don't want new investors -- because you know they'll just dilute you



[1] It's actually a little different to prevent abuse. If you want to invest 10 BTC, what happens if first 10% (1 BTC) is deducted and then you invest the remainder (9 BTC). And then after that, the 1 BTC is given to all investors (which includes your 9 BTC). So the fee is actually always a little less than 10% as you're always getting a little back.  The reason it's done that way, is to avoid people fragmenting their investments into tiny pieces to save on fees

sounds very nice. good luck

please be so kind and explain ELI5 the following

Protection against dilution
To compensate existing investors for diluting the bankroll, 10 % of every investment is distributed among all investors (including the new investor). This dilution fee is waived during the prerelease period over the next three days.

does this mean that in case I invest 10 BTC
10% = 1 BTC will be split to all existing Investors? now I have only 9 BTC invested? actually I lost already 1 BTC

thx

Congratulations on the launch!

I'm obviously pretty biased (as a partial owner), but I am really excited about this site and it's future. I know dicesites are a dime-a-dozen, but I think bustadice goes a few steps beyond. Things I think are really special:

*  Insane coin-selection optimizations, for both privacy and fees. We'll need real data to know exactly how well it works, but in something like 50-85% of the time (in simulations) it can avoid creating change (which is both expensive and extensively to cluster bitcoin transactions).   And users will enjoy *by far* the lowest fees of any bitcoin service. This alone was 3 months of solid work.


* An advanced "offsite" investor system, that allows investors to not just leverage but say exactly how much they want to invest without having to risk it all to a counter-party. Most investment schemes don't even offer leverage, but when they do they tend to use something like multipliers (e.g. 5x) which means when you lose, you're under utilizing your money and when you're up you're over-leveraging. The offsite system keeps it perfect all the time.


 * A really powerful provably fair system, that gives investors (and everyone) significantly improved guarantees. I tried to create a high level technical overview of how it works: https://gist.github.com/RHavar/285c295f7906e03369cd66580a1b5f45

Ryan and I are proud to announce bustadice, a new take on classic dice.

The game is simple: For each bet the outcome is randomly chosen between 1x and 1,000,000x. It's up to you to guess a target that you think the outcome will exceed. If the bet's outcome falls short of your guess, you lose your wager. But if you guessed correctly, your wager is multiplied by your guess!

If you've played bustabit before then you'll feel right at home at bustadice, but seasoned dice players will appreciate bustadice for its simplicity and higher limits as well.


Highlights

• High limits, constrained only by the bankroll (currently Ƀ 23 max profit)
• Instant deposits available
• Native, sandboxed scripting support for custom strategies and bots
• Highly optimised wallet system for best-in-class privacy and low withdrawal fees
• Bankroll investing, including fully Kelly-compliant offsite investing
• Advanced provably fair system designed to protect not only the players, but also investors
• Existing investors receive compensation from new investors when the bankroll is diluted

---

Bitcoin gambling has come a long way, with provable fairness towards players becoming the norm. Unfortunately investors still don't have the same kind of guarantees.

They risk casinos getting hacked or operators disappearing with their investments over night. But even at best, if neither of that happens, investors can never be certain that they aren't being undetectably cheated by someone with knowledge of future rolls. There is simply no way to know whether that incredibly lucky highroller was a legitimate player or a malicious casino operator merely pretending to be one.

Similar to how JustDice pioneered provably fair dice games, we hope that bustadice will considerably improve the situation for investors and set the standard for casino investing.

Enhanced provable fairness
bustadice builds upon conventional provably fair systems to provide additional guarantees to players, investors and the casino itself:

For players: If a dispute over fairness arises with a legacy casino, it's largely their word against yours. In bustadice, on the other hand, all bets are committed to an independent audit server in real-time and can be reviewed and verified by Ryan if need be.

For investors: Neither I nor Ryan can undetectably cheat by predicting future rolls. Assuming you trust the two not to collude, investing becomes provably fair.

In addition, the casino itself gains increased confidence that all wins are legitimate–even if the game server were to be compromised.

The way we do achieve is by introducing a third party: The auditor (Ryan). Final roll results are computed with input from all three parties: The player, the game server and the auditor. When a server seed is revealed, both the player and the auditor can verify its bets.

For a simplified high-level overview of how it works, take a look at our FAQ. Or jump right into the technical details by taking a look at our open-source verifier and reference code.

Offsite investing
In many leveraging systems you are forced to pick a leverage from only a few options and stick with it. This means that you are nearly always risking either too much or too little. bustadice keeps track of your offsite investment and automatically adjusts your leverage to ensure that you are always exposed to the optimal amount of risk.

Protection against dilution
To compensate existing investors for diluting the bankroll, 1 % of every investment is distributed among all investors (including the new investor).

Multisignature cold storage
The majority of users' funds is securely held in 2-of-3 cold storage with keys split between Daniel of bustabit, Ryan and a neutral third party.

This wallet can only be accessed with the approval of at least two keyholders and ensures that users' deposits can be safely returned to them if something were to happen to one of the keyholders.