GambleFi Theory

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|                    GAMBLEFI THEORY                         |
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|                                                           |
|   Crypto's main themes: CULT, CASINO, PONZI               |
|                                                           |
|   Cults can't be copied                                   |
|   Three-Ponzi Theory guides ponzi design                  |
|   So how to design around casino logic?                   |
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1/ Four Industrial Revolutions of Gambling

Gambling is one of the world's largest and oldest industries by flow:

2/ Problems with Gambling Industry

GenZ's participation rate in traditional gambling is increasingly low.

Root Cause: Young people refuse to accept rules set by previous generations

• No say in this
• Lack equal supervisory power
• White-label platforms can freeze withdrawals and ban IPs
• Casinos can change kill rates anytime

3/ Crypto's Solution

Young people's core need remains making money, but they want to control the game themselves.

Only Crypto and smart contracts can achieve:

• Mandatory settlement
• Smart contracts can become the gambling tool itself

Gambling is the most reliable known method for crypto projects to generate real revenue

4/ Three Logics of Gambling

All gambling games essentially have only three logics:

From Uniswap to NFTs, inscriptions, digital collectibles, Friendtech, Pump, etc. - aside from the ponzi part, purely from trading perspective, they're just permutations and combinations of modifications to these three dimensions.

5/ Case Study: Crash Game & Pump

Almost every major gambling platform has a game called Crash:

Crash Rules:
├── Choose bet amount
├── Choose multiplier to hold bet until cash out
├── Bet is locked
└── System gives a crash point, goes up from 1x until crash

If holding multiplier > crash point → Lose money
If holding multiplier < crash point → Take profit

Mapping Pump to this:

Pump's mechanism is actually the Crash gambling game, just wrapped in a meme coin shell

6/ Monetizing Gambling

Rollbit/Shuffle's essence is still white-label platforms, only competitive point is operations. Core logic is being the house and eating client losses, letting users gamble within their rule framework.

What new GenZ wants is:

• Define the game themselves
• Have their own "edge" or alpha

Crypto's asset logic perfectly fulfills this characteristic:

Token/NFT/inscription and various asset logics allow a simple "gamble" to be packaged as "trading," nominally or substantially adding more game choices, while bridging external liquidity to amplify pool size.

This is Pump's revolutionary nature—monetizing gambling, gambling-ifying currency

7/ Distinguish Ponzi from Casino

Ponzi and casinos can overlap. But as a designer, you must clarify your audience.

Design Principles:

1. First clarify whether you're a gambling pool or ponzi
2. Clarify your operating purpose
3. Begin with the end in mind

Core Formula

Three Gambling Logic Elements:
├── Betting → Issuance
├── Determine win/loss → Trading
└── Decide win/loss → Market Making

Pump = Crash Game + Meme Coin Packaging

GambleFi Design Principles:
├── Young people want control
├── Smart contracts provide verifiable fairness
├── Assetization turns "gambling" into "trading"
└── Clarify whether audience is gamblers or ponzi players

Next: Sociological Perspective