- Rollbit is an online casino, perpetual futures exchange, sportsbook
- Its annualized fees rank it third after UniSwap and Lido
- Its buy-and-burn mechanism is equivalent to a share buyback
Rollbit combines an online casino, crypto perpetual futures exchange, and sportsbook into one big gamified hub for wagering crypto. The platform’s YTD revenue has been $355m according to data from Alpha Transform Holdings.
Ease of use
It has actually been in operation since early 2020, but it saw an increase in platform usage in 2023. While Rollbit is neither the first crypto casino nor DEX, it stands out from its competitors with its ease of use.
In the footsteps of giants
It generated $41.7m in fee revenue, an annualized rate of $508m. This ranks it third after UniSwap with $543m in annualized fees and Lido with $529m annualized fees per DeFiLlama.
RLB is the platform’s utility token, granting holders discounts on trading fees, rebates on casino fees, and access to a daily lottery; these no doubt contribute some demand for the token.
Effective buyback program
The greatest driver is the token buyback program. Rollbit delivers value back to RLB holders in the form of daily buybacks of the RLB token, funding these buybacks with cash generated from the platform’s various product offerings.
Benefits of buy-and-burn
Its buy-and-burn mechanism is functionally equivalent to a share buyback, well-tested in the equities markets as an alternative to dividends to deliver value back to asset holders. In fact, this buyback method is generally preferred to dividends or staking rewards, since it generates no taxable income for holders until the sale of the underlying token.
The buy-and-burn has already burnt more than 37% of the outstanding RLB supply, and is currently burning RLB at a rate of more than 1% of the circulating supply per month based on on-chain data.
Revenue growth from gaming and crypto futures
Rollbit revenues are growing fast with October seeing a 19% increase over September. While the casino revenue may largely track the broader gaming sector, crypto futures revenue could grow dramatically in a crypto bull market, which could also have some spillover effect to grow revenues of other product lines once new users have joined the platform.
