On-chain lottery protocol Megapot said it will close its official megapot.io app and Telegram app on Dec. 1 and shift its focus to Prizerail, an enterprise giveaway platform that is separate from the protocol.
Public information shows the project has backing from Dragonfly and Coinbase Ventures. Megapot said the protocol itself will not change. It will remain fully on-chain and permissionless, and applications or tokens built on the protocol can continue operating.
Ticket sales stopped on Oct. 29
Megapot said ticket sales on its official website and Telegram mini app stopped on Oct. 29. Its liquidity supporter program, signup rewards, referral rewards and guaranteed prizes have ended, and its points program has been paused.
The team said prizes that users have already earned remain claimable. Users can also withdraw their balances without identity verification for now.
Different claim paths before and after Dec. 1
According to Megapot, after Dec. 1, on-chain lottery prizes and referral fees will still be claimable through Basescan or third-party applications. Guaranteed prizes are part of an off-chain program and must be claimed before that date. Rewards issued in the form of free lottery tickets can be claimed in USDC.
Users who signed in with email, X, or Telegram must withdraw funds before Dec. 1, after which those accounts will no longer be available. Users who connected their own wallets will continue to own their tickets and prizes.
For liquidity providers, the team said they can keep providing liquidity or withdraw at any time. It also said no new supporter program will be launched.
Data API is being phased out
Megapot said its data interface is now considered deprecated. The team is no longer maintaining it and plans to stop the service later.
Why the team is moving toward Prizerail
Megapot said most applications now use lottery mechanics as rewards for deposits, trading, and referrals, and that most of the protocol's transaction volume currently comes from those use cases. To serve larger applications, the team launched the Prizerail enterprise brand.
According to Megapot, those customers generally ask for U.S. compliance, legal memos for payment service providers, and products that are not associated with betting. The team said it worked with legal counsel and is offering those capabilities in a structure independent from Megapot.
Recent operating figures disclosed by the team
Megapot said that of 20 potential customers generated after its Singapore roadshow, 19 chose Prizerail and only one chose Megapot.
The team also said the protocol already has dozens of independent applications, has paid out more than $1 million in prizes, saw ticket sales rise 3x over the past three months, and recorded the first month in which its liquidity pool did not rely on incentives during the past month.
