🎟 X402FUN Raffle System – On-Chain Lottery Mechanism on Solana

The X402FUN Raffle System is a fully on-chain, transparent, and verifiable lottery protocol built on the Solana blockchain.

All core operations — including wallet participation, token burn, winner selection, and reward distribution — are executed via a Solana smart contract (program) and settled directly on-chain.

The system operates using a burn-to-enter participation model, creating continuous deflationary pressure on the X402FUN token economy.

Raffle Process

Participation Mechanism

1- )Users connect their Solana wallet (Phantom, Solflare, etc.).

2-) To enter the raffle, they sign a transaction to burn $50 worth of X402FUN tokens.

3-) The required token amount is calculated dynamically based on the token price, which updates every 30 seconds.

4-) If price deviation exceeds 2% slippage, the transaction automatically fails (transaction revert).

5-) Once the burn transaction is successfully confirmed on-chain, the wallet address is added to the active raffle pool.

Four Hour Raffle Cycle

• Each raffle round lasts 4 hours.
• At the end of the cycle, the smart contract selects one winning wallet.
• Winner selection is executed on-chain and is publicly verifiable.
• Results are displayed directly on the raffle page.

Minimum Participation Threshold

To maintain economic sustainability and prize pool balance:

• If fewer than 10 unique wallets participate during a 4-hour cycle,
• The raffle round is automatically cancelled.
• No winner is selected.
• Participants can claim a full on-chain refund of their allocated tokens.
• The protocol then initiates the next raffle cycle.

This mechanism ensures economic stability and protects participants during low-activity periods.

🏆 Raffle Rewards

Each four hour raffle winner receives:

• 350 USDC
• 1 Grand Raffle Ticket

Rewards are distributed directly on-chain to the winning wallet.

The USDC prize is transferred via SPL token transfer, ensuring full transparency and verifiability.

🎟 Grand Raffle System (Monthly)

The Grand Raffle is a higher-tier monthly lottery event.

Eligibility

Only wallets holding at least one Grand Raffle Ticket are eligible to participate.

Grand Raffle Tickets are exclusively earned by winning a 4-hour raffle round.

Grand Prize

At the beginning of each month:

• One wallet is selected on-chain.
• The winner receives 5,000 USDC.

All ticket validation, winner selection, and prize distribution occur entirely on-chain.

🔐 Security & Transparency

The X402FUN Raffle Protocol is designed with a strong focus on decentralization and trust minimization.

Core Security Features

• Fully on-chain execution
• Non-custodial architecture
• Burn verification via SPL Token Program
• Automatic slippage protection (max 2%)
• On-chain winner selection
• Publicly verifiable transaction history
• Transparent USDC reward distribution
• Refund mechanism in case of insufficient participation

No off-chain manipulation or centralized control is required for raffle execution.

Assumptions

• Entry requirement: $50 worth of X402FUN burned per participant
• Raffle frequency: 6 raffles per day (every 4 hours)
• 30-day monthly cycle
• Small raffle reward: 350 USDC
• Monthly Grand Raffle reward: 5,000 USDC
• Minimum participation threshold: 10 wallets

📊 Daily Metrics

• 6 raffles × 10 participants = 60 total entries per day
• 60 × $50 = $3,000 daily token burn

📅 Monthly Burn Volume

$3,000 × 30 days = $90,000 monthly burn

This represents $90,000 worth of X402FUN permanently removed from circulating supply.

📉 Economic Interpretation

At 10 participants per raffle:

• The protocol meets the minimum participation threshold.
• The system remains operational.
• Deflation continues, but at a limited scale.
• Reward costs approach the burn-generated value.
• This level represents a near break-even lower operational boundary for the raffle system.

If participation drops below 10 wallets:

• The raffle round is automatically canceled.
• No winner is selected.
• Participants can claim refunds.
• No burn is executed.

Thus, 10 participants per round represents the minimum sustainable activity threshold for system continuity.

Important Notice

The USDC reward pool will be funded from platform revenues.

If platform revenues become insufficient to sustain the USDC reward pool, the raffle system will be temporarily suspended until adequate funding is restored.