2.1 How does the Lottery system work?

How does Samurai Lottery work? In order to engage and play, you must be a holder of: - At least 500 HNR tokens - Hold at least 1 Honour Node NFT (the access to the lottery is exclusive ONLY to Samurai NFT holders)

Each game has a fixed play amount / cost of 500 HNR tokens, and the entire game process is fully managed by the protocol and its underlying smart contracts. All that is required by players is to hold the above stated requirements and to have your Metamask wallet connected.

Afterwards, navigate to our new section on the decentralised application, approve the contract, and press play. If you’re successful (with a bit of luck), you can win 1000 HNR tokens (2x the input, and the tokens will be directly sent to your wallet by the protocol). Otherwise, you lose and can decide to play again or try your luck another time!

As with any “lottery-like” systems, the “house” (the protocol in this case) has an algorithmically embedded statistic edge. However, that is why the 100% winning prize (2x HNR token winnings) was implemented a counterbalancing measure. The number of games you can engage in and play is unlimited, for as long as there are still enough HNR tokens in the contract to give out to players (that is, there is at least 1000 HNR tokens still left in the protocol’s lottery balance).

ALL of the protocol’s HNR token lottery winnings will be utilised to replenish the rewards pool and hence further enhance the protocol’s sustainability. (This is now deprecated, as the protocol now relies on the xHNR token, which has an elastic supply)

IMPORTANT DETAIL: You can engage with the lottery and “Play Tax Free”! If you have accumulated rewards in the dApp they automatically conform to the protocol’s current tax system (e.g. claims tax, sliding tax, etc.), however you can use your accumulated rewards and play the lottery WITHOUT BEING TAXED. In order to do so, use the same steps, however, instead of the normal play button, press Play Tax Free. If you have at least 500 HNR of unclaimed rewards, the protocol will engage you in a game as the unclaimed rewards will be used as the entry fee without any taxation applied.