The fee lottery distributes all fees a user pays to the hierarchy/chain of users who paid him. The further away someone is in the chain, the less likely they are to win the fee. At the end of the chain, you always find the "Bank" user. When the "Bank" user wins a fee, it is given to any user in the bank who has a positive balance of the currency of the fee. The more money user has, the more likely it is that he will win the fee.
- An example chain of users who referred each other
- Who can win when a user with three people in the chain pays a fee
- What happens when the bank wins a fee
The probability of winning a fee depends on how many people are in the chain, N, how far away you are from the user paying the fee, n, such that n=1 means you personally referred the user, and a constant value, k, which is how much less likely you are to win for every step away from the source: