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Education

Understanding Prize Distribution: How We Split the Pool

CryptoDrawz Team
December 30, 2025
6 min read

How CryptoDrawz Distributes Prizes

One of the most common questions we receive is about prize distribution. How do we decide who wins what? Why are the percentages set the way they are? This guide explains everything about how CryptoDrawz splits the prize pool.

The Basic Structure

Every prize pool at CryptoDrawz is distributed as follows:

90% goes to winners, 10% to operations.

Why This Distribution?

Top-Heavy for Excitement

The 45% jackpot creates life-changing wins that generate excitement. While harder to hit, the jackpot is what dreams are made of.

Multiple Winning Tiers

With 4 prize tiers, more players win something. This keeps the game engaging even when you don't hit the jackpot.

Sustainable Treasury

The 10% treasury ensures CryptoDrawz can:

  • Maintain platform infrastructure
  • Develop new features
  • Handle security and audits
  • Provide customer support
  • Real Example: $50,000 Prize Pool

    Let's break down a $50,000 prize pool:

    Jackpot (45%): $22,500

  • 1 winner takes all: $22,500
  • Second Tier (25%): $12,500

  • 5 winners: $2,500 each
  • 10 winners: $1,250 each
  • Third Tier (15%): $7,500

  • 20 winners: $375 each
  • 50 winners: $150 each
  • Fourth Tier (5%): $2,500

  • 50 winners: $50 each
  • 100 winners: $25 each
  • Treasury (10%): $5,000

  • Operations and development
  • What If No One Wins a Tier?

    This is where CryptoDrawz differs from many lotteries. If no one matches a particular tier:

    Option A: Rollover

    Unclaimed tier prizes roll into the next round's jackpot, creating bigger prizes.

    Option B: Distribution Down

    Prizes redistribute to lower tiers, creating more winners.

    We currently use Option A to build exciting jackpots while ensuring the prize pool is always fully distributed.

    Comparing to Traditional Lotteries

    Traditional Lottery Distribution

  • Often 50%+ goes to government/operator
  • Complex prize structures
  • Opaque fee calculation
  • Slow payout processes
  • CryptoDrawz Distribution

  • 90% to players
  • Simple 4-tier structure
  • Transparent on-chain
  • Instant payouts
  • Our player return rate significantly exceeds most traditional lotteries.

    How Winners Are Determined

    Step 1: Draw Winning Numbers

    VRF generates 6 random numbers (1-99)

    Step 2: Match Tickets

    Each ticket's numbers are compared to winning numbers

    Step 3: Categorize Winners

    Winners grouped by tier (6 matches, 5 matches, etc.)

    Step 4: Calculate Individual Prizes

    Tier pool ÷ number of winners = prize per winner

    Step 5: Distribute

    Prizes added to winners' accounts for claiming

    Why 6 Numbers?

    We use 6-number matching because it provides:

    Good Odds Balance

  • Hard enough to create significant prizes
  • Easy enough that someone wins regularly
  • Multiple Win Possibilities

  • 4 different ways to win (3, 4, 5, or 6 matches)
  • Keeps players engaged
  • Clear Understanding

  • Easy to check your numbers
  • Simple to understand results
  • Ticket Price and Pool Growth

    Each ticket costs $5, which means:

  • 1,000 tickets = $5,000 pool
  • 10,000 tickets = $50,000 pool
  • 20,000 tickets = $100,000 pool
  • As our community grows, prize pools grow proportionally!

    Frequently Asked Questions

    Why not give 100% to players?

    Running a secure, fair lottery platform has real costs:

  • Server infrastructure
  • Security audits
  • Development work
  • Customer support
  • Legal compliance
  • 10% is modest compared to traditional lotteries.

    What happens to the treasury funds?

    Treasury funds are used for:

  • Platform hosting and infrastructure
  • Smart contract gas fees
  • Security audits and improvements
  • Marketing to grow prize pools
  • Team compensation
  • Can prize distribution change?

    Yes, through community governance. Future plans include letting token holders vote on distribution percentages.

    Why is the jackpot percentage highest?

    Research shows top-heavy prizes create more excitement and attract more players, which benefits everyone through larger pools.

    Maximizing Your Chances

    While prize distribution is fixed, you can optimize your approach:

  • **Buy multiple tickets** - More entries = more chances
  • **Play consistently** - Regular participation adds up
  • **Join when pools are large** - Same ticket price, bigger potential wins
  • **Verify previous distributions** - Understand historical win patterns
  • Conclusion

    CryptoDrawz's prize distribution is designed to maximize player value while maintaining platform sustainability. With 90% going to winners and everything transparent on-chain, you can trust that every dollar in the pool is distributed fairly.

    Questions about prize distribution? Contact our support team or check our FAQ for more details.

    Ready to Try Your Luck?

    Join thousands of players in the fairest crypto lottery. Weekly draws every Sunday!

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