#11 Investment Proposal - Kotto

Investment Proposal
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Investment Proposal

1. Project Overview

Project Name : Kotto
Company Name : RAITOMIRA SOLUTIONS PRIVATE LIMITED
Company Location : India
Category : Gaming
Official Website : Kotto.gg
Whitepaper : Kotto Docs
TGE Timing (expected date) : 2025 / Q3

Token Information

  • Token Ticker : KOTTO
  • Token Type : Governance Token
  • Explorer Link : N/A
  • Total Supply : 1,000,000,000
  • Current Circulation Supply : 30,000,000
  • Smart Contract: N/A
  • Audit Report: N/A
  • Market Cap: N/A

2. Team

Executive Members

  • Founder
    10+ years of experience in the gaming industry.
    Previously worked at Blizzard Entertainment and Tencent Games.

  • Back-End Developer
    7+ years experience managing cloud infrastructure and game server architecture.

  • Designer
    5+ years in website design.
    Contributed to games with 1M+ downloads.

  • Business Development
    5 years in Web3.
    Worked on GameFi and DeFi projects.

History and Milestones

  • 2025 Q2: Product Release (Kotto Play, Challenge)
  • 2025 Q3: $KOTTO TGE, on-chain raffle promotion
  • 2025 Q4: Launch on LINE Mini App
  • 2026 Q1: Prediction Market launch

3. Business

Project Description

Kotto offers simple but fun risk-to-earn jackpot experiences by combining DEX and gamified features.

Problems to Solve

Currently, Kaia’s TVL (Total Value Locked) and DEX volume are relatively low compared to other chains. Recently launched, Abstract is incentivizing users to engage in DEX activity by offering rewards in the form of future tokens. The dApps based on this are mostly gamified DeFi applications. Users participate in these dApps primarily to earn Abstract tokens. However, through these applications, users actually receive rewards, which leads to the onboarding of new users and makes the experience enjoyable.

TVL, Trading Volume Comparison

Chain TVL 24h DEX Volume
Kaia ~$30.99M ~$3.7M
Optimism ~$756.1M Not specified
Arbitrum ~$2.109B ~$1.054B
Sonic ~$987.86M ~$183.3M
Starknet ~$138.99M ~$5.21M
zkSync Era ~$63.29M ~$3.71M

Project Features

Kotto Play is a decentralized lottery platform built on the Kaia blockchain, offering a gamified experience that combines risk and reward mechanics with DeFi principles. Here are the key features:

Core Mechanics

  • Ticket-Based Participation: Users purchase lottery tickets using KAIA tokens. Each ticket has a unique number, and the proceeds contribute to the prize pools.
  • Dual Pool System:
    • User Pool: Funds collected from ticket sales. This pool is the primary source for prize payouts.
    • Liquidity Pool: Users can provide liquidity by depositing KAIA tokens, where liquidity providers can earn revenue without betting while taking risk at various level.
      • Low Risk (20%)
      • Recommended (33%)
      • Aggressive (50%)
      • YOLO (100%)
      • Custom Percentage: Users can set a custom risk percentage.
  • Withdrawal Flexibility: Liquidity providers can withdraw their remaining balance at any time, minus any losses incurred from jackpot payouts.

Lottery Logic

  • Daily Draws: Winners are selected once per day using a randomness oracle (e.g., Pyth).
  • Winner Determination:
    • User Pool > Liquidity Pool:
      • A number is drawn from the range of purchased tickets, guaranteeing a winner.
      • The winner receives the entire User Pool.
    • Liquidity Pool ≥ User Pool:
      • A number is drawn from a range equal to the number of tickets sold plus an equivalent number representing the size of the Liquidity Pool.
      • If the number falls within the range of user-purchased tickets, a user wins and receives the User Pool plus a portion from the Liquidity Pool based on the aggregate risk percentage.
      • If no user wins, liquidity providers share the User Pool.

Strategic Implications

  • For Players: Offers a transparent and fair lottery system with the potential for significant rewards.
  • For Liquidity Providers: Provides an opportunity to earn returns from ticket-sale fees and unclaimed User Pools, with the ability to manage risk exposure.
  • For the Ecosystem: Encourages active participation and liquidity provision, fostering a sustainable and engaging platform.

Key Achievements

  • Pre-launch stage

Competitor Comparison

PoolTogether

  • Category: No-loss lottery / DeFi Game
  • Mechanism: Users deposit stablecoins and earn interest via DeFi protocols. Interest is pooled and distributed as a prize.
  • Strengths:
    • Regulatory-safe “no-loss” narrative
    • Strong brand in DeFi ecosystem
    • Backed by blue-chip DeFi protocols
  • Weaknesses:
    • Not jackpot-focused; low excitement
    • Limited user growth in recent years
  • KOTTO Edge: Higher entertainment value through jackpot thrill + active risk-taking mechanics

Rollbit

  • Category: Crypto Casino
  • Mechanism: Centralized platform offering roulette, sports betting, futures trading, etc.
  • Strengths:
    • High revenue, broad game variety
    • Aggressive marketing, influencer deals
  • Weaknesses:
    • Fully custodial, no transparency
    • Not DeFi-native; regulatory pressure mounting

KOTTO Edge: On-chain transparency, DeFi integration, and user ownership

Tokenomics

Token Utilities

Kotto ($KOTTO) is the governance token of Kotto.gg designated to incentivize early users and ecosystem partners for the growth of the gamefi ecosystem. The Kotto team uses the revenue generated from the Kotto platform for buybacks or to develop new products. Most of the tokens are used to support ecosystem growth rather than the team.

Revenue Model

  • Ticket sales fee: Platform takes a fee when ticket is purchased
  • Challenge fee: Whenever player lose at the challenge, platform takes fee

Value to Kaia Ecosystem

  • Total Value Locked (TVL) — As players deposit KAIA into KOTTO’s liquidity pool to participate in jackpot risk-reward dynamics, they effectively lock value into the network. The more participants and liquidity providers the platform attracts, the higher the TVL grows, demonstrating increasing trust and capital commitment within the ecosystem.

  • Trading Volume — KOTTO’s game mechanics, which include ticket purchases, reward distributions, and potential on-chain challenges, generate consistent token flow and transactions. This sustained user interaction results in organic growth in DEX trading volume, which is critical for network activity and future liquidity incentives.

Strategy

The Kotto team uses the revenue generated from the Kotto platform for buybacks or to develop new products.

Business Plan

Marketing Strategy

Narrative building

  • Position KOTTO as the first provably fair, user-driven jackpot game on Kaia.
  • Emphasize its transparency, daily excitement, and real user ownership—unlike traditional exploitative gambling platforms.

DApp portal Mini App

  • Build a LINE mini app version for seamless onboarding and usage

KOL Campaign

  • Targeting Japan, Korea, Taiwan and Thailand

Community Strategy

Many people buy lottery tickets because a single win can offer a life-changing amount of money in WEB2. Based on this precedent from Web2, our goal is to attract significant capital into the Kotto pool.

Risk Points

Regulatory Risk

  • Risk: Due to the nature of risk to earn, KOTTO may face regulatory scrutiny in jurisdictions with strict gambling laws.
  • Mitigation:
    • Position KOTTO as a DeFi-based Risk to Earn game rather than traditional gambling.
    • Use terminology such as “risk-to-earn” or “on-chain sweepstakes” to reframe the narrative.
    • Implement geo-fencing and localized messaging to avoid high-risk regions.

Bank Run Risk

  • Risk: A large jackpot win or a streak of high-risk LP withdrawals could drain the liquidity pool, potentially bankrupt the protocol.

  • Mitigation:

    • Maintain a tiered LP structure (e.g., YOLO / 50% / 33%) to spread exposure.
    • Set daily payout caps or winner limits to manage potential outflows.
    • Establish a protocol reserve fund from fee revenue to act as a backstop.
    • Provide real-time transparency of liquidity pool status and payouts to maintain user confidence.

4. Industry

Market Overview

Growth of GambleFi

  • GambleFi represents the rapidly growing intersection of gaming and decentralized finance (DeFi) It has emerged as a significant growth driver in the current market, attracting a diverse range of players and investors.

Market Dynamics

  • Increased Interest. The rise of cryptocurrency has fueled interest in GambleFi products. Engagement: Players are increasingly seeking innovative gaming experiences that leverage blockchain technology

Market Dynamics

  • Crypto growth boosts GambleFi interest
  • Blockchain-based gaming preferred by new users

Potentials

DeFi-Integrated Gaming

  • KOTTO introduces a novel risk-to-earn model where users can either play for jackpots or act as liquidity providers who share in rewards or losses based on risk tiers which has a potential to increase TVL and trading volume of the KAIA ecosystem.

Strategic Advantage via Kaia x LINE partnership

  • KOTTO is built on the Kaia chain, which is backed by LINE and Klaytn—two of Asia’s largest Web2/Web3 platforms.
  • Integration with the LINE Mini App ecosystem provides direct access to millions of users across Japan, Taiwan, and Southeast Asia, lowering onboarding friction and scaling fast adoption.

5. Investment Overview

  • Term: SAFT
  • Investment Amount: USD 300,000