# The Ecosystem Megapot brings together three groups of participants, each playing a different role in making the lottery work. Understanding how they fit together helps explain why Megapot can offer better odds and instant payouts. *** ## Three Roles, One System ### Players Traditional lotteries keep most of your money. Megapot returns approximately 70% as prizes. For just $1 USDC, you're in the running for 10 prize tiers—including the jackpot. And with a drawing every single day, you don't have to wait long for your next chance. ### Backers Backers fund the prize pool. They deposit USDC, and that money becomes available as prizes. In return, Backers earn a share of ticket sales revenue. Think of Backers as the foundation that makes everything possible. Without them, there would be no prizes to win. In exchange for taking on this role, they earn returns from every ticket sold. ### Referrers Referrers help spread the word about Megapot. When someone uses a referral link to buy tickets, the Referrer earns a portion of the sale. If that player wins, the Referrer also earns a share of the winnings. Referrers are incentivized to bring in players who stick around, because their earnings grow when their referrals win. Learn more on our [Referral Economics](https://github.com/coordinationlabs/v2-gitbook/blob/main/learn/referral-economics.md) page. *** ## How Money Flows Every dollar spent on tickets flows through the system in a predictable way. Here is how it breaks down:
Megapot Mechanism

Megapot Mechanism

### Step by Step **1. Backers fund the prize pool** Backers deposit funds into the prize pool. Their deposits becomes available as prize money. **3. Players buy tickets** Each $1 ticket purchase gets split: * \~90% goes to Backers (as revenue) * \~10% goes to Referrers (as fees) **4. The drawing runs** Once daily, Pyth Network generates verifiable random numbers. These determine the winning combination. No one can predict or manipulate the outcome. **5. Winnings Calculated** Approximately 70% of ticket sales are paid out as prizes across all tiers. 10% of prizes are paid to referrer's as a referral win share. **6. The cycle continues** After each drawing, a new round begins. Backers' positions update based on the results, and the system is ready for the next day. ### The Key Insight Backers receive 90% of ticket revenue, but over time approximately 70% gets paid out as prizes. The difference (roughly 20%) is the expected Backer return per ticket. This is how Backers earn yield while making the prize pool possible. *** ## Why Everyone Benefits from Growth The Megapot ecosystem is designed so that all three roles benefit each other and drive further community growth. **When more Players join:** * Backers earn more revenue * More Backers join the pool * Prize pools get larger (more exciting jackpots) **When more Backers join:** * Bigger jackpots mean bigger wins * Larger prize pools attract more Players * Referrers convert at a higher rate * More referrers join **When more Referrers join:** * More Players discover Megapot * More Players play Megapot * Backers earn more revenue This alignment of incentives is what makes the system sustainable. No single group can succeed at the expense of the others. *** ## What Makes This Work Megapot operates differently from traditional lotteries in several important ways: | How Megapot Works | What This Means for You | | -------------------------------------- | -------------------------------------------------------------- | | Community funds the prizes | 100% of ticket sales return to Players, Backers, and Referrers | | Every transaction is on-chain | You can verify exactly where your money goes | | Pyth Network generates winning numbers | Results are provably random and tamper-proof | | Smart contracts handle payouts | Winners receive prizes instantly to their wallets | | Global participation | Same game, same rules, wherever you are | *** ## Next Steps Now that you understand how the ecosystem works, try out the role that interests you most: * **Want to play?** Learn [How to Play](https://docs.megapot.io/getting-started/how-to-play) * **Interested in backing?** Learn [How to Back the Pool](https://docs.megapot.io/getting-started/how-to-back-the-pool) * **Ready to refer?** Learn [How to Refer](https://docs.megapot.io/getting-started/how-to-refer) Or continue learning: * [Provable Fairness](https://docs.megapot.io/getting-started/provably-fair) - Why our lotteries are provably fair * [Prize Structure](https://docs.megapot.io/learn/prize-structure) - How tiers and payouts work * [Backer Economics](https://docs.megapot.io/getting-started/backer-economics) - Deep dive on Backer returns * [Referrer Economics](https://github.com/coordinationlabs/v2-gitbook/blob/main/learn/referral-economics.md) - Deep dive on Referrer returns