The Rollbit token (RLB) was introduced as a key component of the Rollbit lottery, and it did not go through an initial coin offering (ICO). Instead, RLB was distributed for free to existing users of Rollbit.com, the casino and trading platform. The RLB lottery serves as a way to generate demand for the token, as holders of RLB have the opportunity to win a portion of the casino's profits by using their tokens as entry tickets. The prizes for the lottery are funded by a pool that accumulates 20% of the casino's daily profits during each round. With Rollbit already operating profitably before the token launch, RLB has immediate utility by being integrated into the lottery, and the prizes are sourced from the casino's profits. The maximum supply of RLB is 5 billion coins, and in order to participate in the lottery, RLB tokens must be staked, with half of the staking fee being permanently burned (removed from circulation) in each round. This gradual reduction in the number of tokens in circulation over time contributes to the potential growth in value. The other half of the staking fees is directed towards staked Rollbots, which is Rollbit's NFT project. When all RLB tokens are staked, there will be an annual burn rate of 45% of the total supply. The higher the number of tokens staked, the greater the decrease in supply as more tokens are burned for lottery entry. As demand for RLB increases over time, this upwardly affects the price of the token.
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