# π€How the Daily Draw Works

Kachingβs Base draw and Turbo Draw operate on a daily basis. Picks will be allocated to the user based on their proportion of staked CRO in the TVL of each Draw. Each userβs pick has a unique, pseudo-randomly generated number! This number is generated by first hashing the wallet address and then hashing it again with a sequential pick number. β¨π’ The parameters of each draw may change from time to time, but we will be sure to announce any changes on our Discord.

TL;DR: The more well-matched a userβs pick is to the Winning Number, the higher the prize will be.

Please note, Tier 0 is used to represent the highest tier of a match and is for calculation purposes only. **We will use Tier 1 to represent the highest tier of a match in other parts of the documentation and on Kachingβs main UI as well.**

## The Winning Number

Everyday, we will request a randomly-generated number (βWinning Numberβ) from Band Protocol's VRF bot (Learn More). This number follows the same structure as the pseudo-random numbers of each pick.

We will then compare each pseudo-random number on each pick to the "Winning Number", and the magic of matching begins! ππ«

## Matching Process

Please bear in mind that the following calculations make use of example figures and should be taken as a reference only.

There are a few variables that is necessary to understand the mechanics behind the draw:

Now, let's delve into how the matching process works.
Using an example setup of **Bit Range (BRS) = 1** and **Match Cardinality (MC) = 3**.

This implies the Possible Picks (PP) of the full Winning Number is 2^3 = 8;

000, 010, 001, 011, 100, 110, 101, 111

And the Probability to win Top Prize (PWT) is 1 / 8.

**Let's consider a hypothetical Winning Number: 111.**

Given the presence of multiple tiers in the prize configuration, the matching process extends to cover each tier. This ensures that prizes are distributed fairly and accurately to winners across all tiers.

The probability of each pick achieving each tier can then be calculated:

## Prize Allocation

Letβs further assume that the total prize amounts to 1,000 CRO and we want the following prize amounts:

To ensure an enticing distribution of rewards that matches the thrill of the draw, we meticulously configure the allocation of prizes for each tier. In our example scenario, we're splitting the rewards as follows:

In our example's Tier 2, where the Possible Picks in the Tier (PPT) exceeds 1, the prize allocated to this tier is distributed among multiple winning combinations. This dynamic arrangement ensures that more participants get to savor the joy of victory within this tier.

In reality, the prize amount is set by Kaching, and will take into account the yield generated from the yield source as well as any subsidies provided to the distribution smart contract. Curious about specific prize amounts? Check them out right here.

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