> For the complete documentation index, see [llms.txt](https://docs.sweep.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sweep.finance/ecosystem-components/platform/sweepstake.md).

# Sweepstake

#### **What is Sweepstake**

Sweepstake is a continuous, time-based distribution system where users participate in scheduled rounds and receive outcomes based on their relative share within each round.

Unlike single-action or instant-result formats, Sweepstake operates as an ongoing structure composed of automatically repeating rounds. Each round runs for a predefined duration and concludes with a distribution process across multiple winners.

Participation in a round determines a user’s relative position within the system. As users contribute, their share increases proportionally, directly influencing their presence within that round’s distribution model.

Sweepstake is not designed as an isolated game mechanic. It functions as a core layer of the Sweep ecosystem, combining continuous participation, dynamic positioning, and automated distribution into a persistent system that operates independently of individual game types.

Over time, this structure enables Sweepstake to serve as a foundational component for value flow, user engagement, and recurring activity across the platform.

***

#### **How it works**

Sweepstake operates through a repeating lifecycle of time-based rounds. While each round follows a fixed structure, the system runs continuously without interruption.

**Round creation and structure**

Each round is initialized with predefined parameters:

* a fixed duration (e.g. 15 minutes, hourly, daily)
* a defined number of winners
* a shared participation pool

Rounds begin automatically and are continuously recreated after each completion. At any given time, users can enter an active round without waiting for manual triggers.

***

**Participation and positioning**

Users participate in a round by contributing value to the pool.

* Each participation increases the user’s share
* The share represents the user’s proportional position within the round
* Additional participation expands this share dynamically

As the round progresses:

* the total pool grows
* user shares are continuously updated
* relative positioning evolves in real time

This creates a structure where participation is not static. Users actively shape their position within the round as it develops.

***

**Visual distribution model**

Sweepstake introduces a visual representation of user positioning.

* Each user is assigned a segment within a circular distribution model
* The size of each segment reflects the user’s share
* As participation increases, the segment expands proportionally

This model establishes a direct relationship between:

* contribution
* positioning
* outcome probability

Users can observe their relative position and how it changes throughout the round, making participation transparent and trackable.

***

**Draw execution and distribution**

At the end of each round:

* the system executes a draw automatically
* a predefined number of winners is selected
* winners are determined based on the distribution structure

Each winner receives a portion of the pool according to predefined distribution rules.

Key characteristics:

* the number of winners is fixed for each round
* total participation does not change the number of winners
* the selection process follows system-defined logic

Once the draw is completed:

* the round is finalized
* a new round begins immediately

Each round is independent, and no state is carried over between rounds.

***

#### **Key mechanics**

Sweepstake is structured as a continuous distribution engine built on proportional positioning and time-based execution.

**Time-based continuous execution**

Sweepstake runs on fixed intervals without interruption.

* each round has a defined start and end
* rounds are automatically recreated
* the system always has active participation windows

This ensures constant availability and removes dependency on manual triggers.

***

**Proportional share system**

User positioning is determined entirely by contribution.

* each participation increases share size
* share directly affects distribution probability
* positioning evolves dynamically during the round

This creates a clear and measurable relationship between user activity and outcome potential.

***

**Multi-winner distribution model**

Sweepstake distributes outcomes across multiple participants.

* each round includes a fixed number of winners
* distribution is not limited to a single outcome
* value is allocated across multiple positions

This broadens participation impact and avoids single-result concentration.

***

**Deterministic and automated execution**

All processes are executed through predefined system logic:

* round initialization
* participation tracking
* draw execution
* reward distribution

Once a round begins, no manual intervention affects the outcome. This ensures consistency across all rounds.

***

**Integration with Sweep economic model**

Sweepstake is one of the primary drivers of activity within the ecosystem.

Each participation:

* generates transaction volume
* applies a fixed **5% protocol fee**

This fee is automatically divided into:

* **2.5% burned in SWEEP**
* **2.5% distributed in USDT**

Because Sweepstake operates continuously:

* it generates recurring volume
* it supports ongoing distribution
* it contributes to long-term deflation

This makes Sweepstake a central mechanism for value flow within the platform.

***

**Future expansion: user-created draws**

Sweepstake is evolving beyond system-generated rounds.

In upcoming updates, users will be able to create their own Sweepstake rounds with customizable parameters.

This will allow users to:

* define the reward pool
* set the duration of the round
* initiate independent distribution events

Through this feature, Sweepstake will extend from a system-driven model into a user-enabled distribution layer.

Users will not only participate in rounds, but also initiate them, using the Sweep infrastructure to distribute value in a structured and transparent way.

This expands Sweepstake into a broader framework where:

* distribution is not limited to system rounds
* users can create their own structured events
* the platform acts as an execution layer for value distribution

This feature will be introduced as part of a future release.

***

**Future expansion: tokenization layer**

Sweepstake will also integrate with the broader tokenization framework being developed within the Sweep ecosystem.

In future updates, certain Sweepstake structures may be extended through tokenized formats, allowing value distribution mechanisms to operate in a more modular and scalable way.

This integration is designed to expand Sweepstake beyond predefined system interactions and connect it to a wider set of programmable economic structures within the platform.

Further details regarding the tokenization framework are provided in the [**Tokenization**](/ecosystem-components/tokenization.md) section of this whitepaper.

***

**Why Sweepstake is different**

Sweepstake differs from other formats on the platform by focusing on continuous positioning rather than isolated outcomes.

It is not built around:

* single decisions
* instant results
* one-time interactions

Instead, it operates as:

* a persistent system
* a dynamic positioning model
* a scheduled distribution mechanism


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