Headline: Blockchain lottery redirects crypto gambling fees to fund Ethereum core developers
A new on-chain lottery is turning gaming fees into a potential steady revenue stream for Ethereum’s maintenance and development.
Decentralized lottery protocol Megapot announced Thursday it is partnering with Protocol Guild—an independent collective that funds Ethereum protocol contributors—to launch what both groups call the industry’s first “programmable charity lottery.” Through a dedicated Protocol Guild portal, users will be able to buy tickets to a daily lottery with prize pools exceeding $1.1 million. Crucially, Megapot says 100% of referral fees from those ticket sales will be automatically routed by smart contracts to Ethereum developers backed by Protocol Guild.
The move is being pitched as a practical response to growing worries about sustainable funding for Ethereum’s core infrastructure. Despite the network supporting billions in DeFi and trading activity, many developers who maintain Ethereum reportedly earn far less than peers working elsewhere in the crypto ecosystem, Megapot said.
Protocol Guild estimates the ongoing effort to maintain and scale Ethereum could require $30 million to $60 million per year. Since 2022 the collective has distributed roughly $38 million to protocol contributors through donations and token-pledge initiatives.
“Every token, NFT, or perps trade depends on the tireless work of Ethereum core developers,” Megapot CEO Patrick Lung said. “Now, players don’t have to choose between speculation and contribution. They can do both.”
Megapot likens the scheme to traditional charity lotteries such as the U.K. National Lottery, but moved onchain. By using programmable referrals and smart contracts, the partners say the system removes administrative overhead and delivers transparent, auditable distributions to developers.
“Getting consistent funding to Ethereum protocol stewards is a critical and growing challenge,” said Trent Van Epps, Protocol Guild’s main organizer and a former Ethereum Foundation member. “We’re excited to see how this novel Megapot integration will raise the bar on how apps can support the infra they depend on.”
The collaboration underscores a broader trend in crypto: experimenting with native, decentralized funding mechanisms that funnel a slice of commercial activity back into public-good infrastructure.
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