⚖️Token Economy

Token Economy

In any gambling system, there is a gross probabilistic ‘Edge’, which combined with incentives, such as ‘Free bets’, for user acquisition and retention, leads to the Net Gaming Revenue (NGR).

In Housebets, this incentive system is outsourced to the HBTS token holders, who collectively determine through Staking, the amount of rebates that users can get from their betting activity. This allows the token holders to maximize their own capital, which allows the market to dynamically resolve for the correct level of incentives that should be given to active gamblers on the platform.

Figure 1: HBTS Token Flow

The system is designed so that by virtue of their own capital optimisation, tokenholders are incentivised to determine this user economic parameter, which is designed to lower the cost, and make more equitable, the long term process of user acquistion.

Housebets is allocating 30% of NGR towards the token ecosystem which is shared dynamically as below:

Figure 2: HBTS Token Flow