LPs netting ~20% margin on the 90/70 ticket revenue split sounds clean until you model the variance on individual drawings — a single $200K+ jackpot wipes weeks of accumulated yield for smaller depositors without reserves to weather a bad run. PoolTogether solved this differently by sourcing yield from lending protocols with zero principal risk, whereas Megapot LPs are straight up underwriting lottery payouts with their own capital. The 8%/8%/2% two-tier referral structure also aggressively compresses margins — those economics get tight fast when you're paying out both winners and two levels of referrals from the same ticket revenue pool.

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