Pegged: A Proof-of-Luck Protocol for Denominated Stable Money

A Structural Response to the Capture of Currency Issuance by Replacing Merit and Control with Access and Chance

4. Functional Architecture

Pegged runs on a public blockchain. This is not a preference, but a necessity. Only a public chain can guarantee the properties the protocol requires: irreversible execution, open access, and persistent availability. Private systems introduce control. Pegged requires indifference.

Each lottery, or draw, is a smart contract. It receives an amount of #PEG from each participant. Once the draw is triggered—either by a time condition or a participation threshold—it uses a secure randomness function to select one or more winners. Payouts are made directly from the contract’s locked pool. There are no rollovers. Each draw is independent. It begins and ends in itself.

The #PEG currency exists in different versions, such as €PEG or $PEG. These tokens are used both to enter the draws and to receive payouts. A small amount is minted at launch to make initial participation possible. After that, no new #PEG is created. Supply may grow, but only through external acquisition and circulation. Pegged does not mint, inflate, or rebalance its currency.

All draws are denominated in #PEG. However, participants may enter using other tokens if a front-end interface offers conversion. For example, a wallet app might accept ETH or USDT, convert it into #PEG using a decentralized exchange, and forward the converted amount to the draw contract. The draw itself does not handle this logic. It only receives #PEG. What happens before or after is outside its scope.

To ensure fair selection, each draw uses a randomness source that cannot be manipulated. This might be an on-chain verifiable random function or an oracle. The integrity of this process is critical. Pegged does not validate users or assess participation. It only selects. If the randomness fails, so does the trust in the outcome.

There is no official Pegged interface. Anyone can build one. It might be a simple website with a button. Or a full-featured app with statistics, calendars, and alerts. These interfaces are not coordinated or approved. Pegged provides only the contracts. Everything else is modular.

In places where access is difficult, local distributors may act as intermediaries. They might sell paper wallets or QR codes containing #PEG. They might explain the system in local languages. They are not agents of Pegged. They are simply access points. The protocol does not see them, regulate them, or rely on them.

Pegged performs one action: the draw. There is no controller, no orchestrator, no fallback. A contract is deployed. It receives #PEG. It selects at random. It pays out. Then it ends. That is the architecture.