Internet Token (INT) is a decentralized lottery protocol that operates on the Base network. It is designed as an autonomous, self-sustaining ecosystem where prize pools, ticket generation, and revenue sharing are funded entirely by trading fees from its native $INT token ^{[1] [2]}.

Overview

The Internet Token protocol launched in March 2024 as a community-run project intended to operate without a central operator or intermediaries. The protocol is founded on a circular economic model where the trading volume of its native token, $INT, directly funds the weekly lottery prize pools and provides a revenue share for token holders. This model aims to align the incentives of traders, token holders, and lottery participants by using the fees generated from trading activity to create both rewards and net buy pressure for the token ^[2].

Since its launch, the protocol has awarded over $5,000,000 in prizes to participants. The lottery events are conducted through weekly prize draws, which have historically featured a dynamic prize structure. These structures include a main progressive jackpot that grows over time, a guaranteed main prize for a single winner, and multiple smaller secondary prizes. Governance is managed by a decentralized autonomous organization (DAO), allowing token holders to guide the protocol's development and operational parameters. Community engagement is a key aspect of the project, which utilizes platforms like Zealy for marketing campaigns and conducts community polls to guide decisions, such as the format of prize distributions ^{[1] [2]}.

Features

The protocol's design incorporates several key features to create a self-sustaining and transparent system ^[1].

Self-Sustaining Funding Model

The protocol operates on a decentralized funding mechanism where the lottery prize pool and revenue-sharing distributions are not funded by external capital or a central treasury. Instead, they are generated automatically and exclusively from fees on $INT token trades. This design makes the protocol's reward system directly dependent on the economic activity within its own ecosystem ^{[1] [2]}.

The Value Loop

A core mechanical concept of the protocol is its "Value Loop." This describes a reflexive cycle where trading activity is intended to perpetually fuel the system's growth. As trading volume for the $INT token increases, more fees are generated. These fees are used to automatically mint lottery tickets, which creates net buy pressure for the token. The potential increase in token value and trading volume leads to a proportionally larger prize pool, which in turn aims to attract more participants and stimulate further trading activity ^[2].

Automated Ticket Generation

Weekly lottery tickets are automatically generated via trading fees from the protocol-owned liquidity pool, acting as rewards for traders. Conversely, non-traders may opt into playing the lottery by using the protocol's Ticket Automator contract for seemly ticket minting ^[1].

Onchain Transparency

All of the protocol's primary operations, from the collection of fees and generation of tickets to the random selection of winners, are conducted onchain. This ensures that all transactions and processes are recorded on a public ledger, providing a transparent and auditable system for all participants ^[1].

Token Burn Mechanism

In addition to its other tokenomic features, the protocol has a token burn mechanism; while 100% of $ETH collected from trading fees funds the prizepool, revenue share, and treasury income, 100% of $INT collected from trading fees is programmatically sent to a burn contract to create deflationary pressure and scarcity over time ^{[1] [2]}.

Ecosystem

The Internet Token ecosystem is built around its community, its native token, and a suite of decentralized tools that support its operations and governance ^[1].

INT DAO

The protocol is governed by the Internet Token DAO. This entity gives $INT token holders control over the protocol's parameters and future development. The official governance portal is hosted on Tally, where token holders can vote on formal proposals regarding treasury management, prize structures, and protocol upgrades ^[1].

Community Platforms

The project maintains several platforms to facilitate community discussion and transparency. A dedicated governance forum exists for community members to discuss proposals and the future direction of the protocol before formal voting. For data-driven insights, public dashboards are available on Dune Analytics for tracking key protocol metrics. The project also provides detailed technical information and documentation on GitBook. Primary community engagement and announcements occur through official channels on X (formerly Twitter) and Telegram ^[1].

Community Engagement Initiatives

The project actively fosters community involvement through various initiatives. These have included marketing campaigns on platforms like Zealy, which offer USDC rewards to participants. Bounty programs have also been established to encourage community members to introduce new partnerships. Furthermore, the project frequently uses community polls on social media to gather opinions on decisions such as prize distribution formats, integrating the community's feedback into its operational strategy ^[2].

Use Cases

The Internet Token protocol and its native token, $INT, offer several primary use cases for participants in its ecosystem.

• Lottery Participation: Users can engage with the protocol by trading the $INT token, which contributes to the prize pool, or by directly purchasing tickets to participate in the weekly lottery draws.
• Revenue Sharing: By holding the $INT token, individuals are eligible to receive a passive share of the protocol's revenue, which is generated from trading fees and distributed weekly.
• Governance: Token holders can participate in the project's decentralized governance by voting on proposals through the INT DAO, influencing the protocol's development, operational parameters, and treasury management. The sources indicate these as the main functionalities provided to users interacting with a lottery, holding the token, or participating in governance. ^{[1] [2]}.

Architecture

The Internet Token protocol is constructed on a decentralized technology stack to promote security, transparency, and operational integrity ^[1].

Network

The protocol is built natively on the Base network, a Layer 2 scaling solution for Ethereum. All core smart contract operations, including fee collection and prize distribution, are executed on this network ^[1]. The primary smart contract address for the $INT token is 0x968D6A288d7B024D5012c0B25d67A889E4E3eC19 ^[2].

Cross-Chain Functionality

To facilitate broader participation from users on other blockchains, the protocol has enabled cross-chain ticketing capabilities. This functionality is achieved through an integration with the Across Protocol, which allows for assets and data to be bridged from other networks to the Base network for lottery participation ^{[1] [2]}.

Verifiable Randomness

Winner selection for the weekly lottery is conducted using Chainlink's Verifiable Random Function (VRF). This technology provides cryptographic proof that the outcomes are genuinely random and have not been tampered with by any party, including the protocol's developers. The use of an onchain, verifiable source of randomness is crucial for ensuring the fairness of a decentralized lottery system ^{[1] [2]}.

Tokenomics

The protocol's native cryptocurrency, Internet Token ($INT), is central to its circular economic model and governance structure.

Allocation

• The protocol is described as having a "fair launch." This term typically implies that there was no pre-sale, private sale, or initial token allocation reserved for the team or early investors, aiming for a more equitable initial distribution. ^{[1] [2]}

Utilities

The $INT token is designed with several functionsIntegral to the protocol's operation.

• Ecosystem Funding: Fees generated from the trading of $INT are the sole source of funding for the weekly prize pool and other protocol-related expenses.
• Holder Revenue: A portion of the trading fees is distributed weekly to $INT token holders, creating a direct revenue-sharing utility.
• Ticket Generation Mechanism: The protocol's mechanics are designed so that the fees used to mint lottery tickets result in net buy pressure for the $INT token, directly linking a core protocol function to the token's market dynamics.
• Governance: The token grants holders voting rights within the Internet Token DAO, allowing them to make decisions on the future of the protocol. These utilities are designed to create a self-reinforcing economic system around the token. ^{[1] [2]}.

Governance

Governance of the Internet Token protocol is managed by the INT DAO. Holders of the $INT token possess the authority to propose and vote on changes to the protocol, effectively giving the community control over its evolution. This includes decisions related to prize structures, the management of protocol parameters, and a say in the direction of future development. The governance process is facilitated through a public portal on Tally, positioning the project as a community-governed entity ^{[1] [2]}.

Confirmed Partnerships

The protocol has integrated with several other projects to enhance its functionality and security.

• Chainlink: The protocol utilizes Chainlink's Verifiable Random Function (VRF) to ensure the fair, transparent, and tamper-proof selection of lottery winners.
• Across Protocol: An integration with Across Protocol enables cross-chain ticketing, broadening accessibility for users to participate in the lottery from different blockchain networks.
• bankrbot: The project has used bankrbot as a service integration for managing airdrops and executing giveaway campaigns for its community on the X (formerly Twitter) platform. These collaborations provide the technical infrastructure for randomness, interoperability, and community engagement. ^{[1] [2]}.