Not all crypto lotteries are created equal. The fact that a platform uses blockchain technology does not automatically make it trustworthy, fair, or good value. There are real differences between platforms — in how draws are executed, how prizes are paid, how transparent the economics are, and how well players are protected.

This checklist gives you a framework for evaluating any crypto lottery before you participate. It covers the questions that matter and what good answers look like.

1. Are the Draws Executed On-Chain?

The most important question. A lottery that calls itself a crypto lottery but executes draws on a private server is not meaningfully different from a traditional online lottery. The crypto branding does not change the trust model.

A genuinely on-chain lottery executes every draw through a smart contract on a public blockchain. The result is recorded permanently and can be independently verified by any player using a blockchain explorer.

What to look for: A Verify On-Chain link or equivalent on the draw results page. The ability to find your draw transaction on a public blockchain explorer.

Kaching: Every draw result is recorded on-chain with a publicly visible draw hash. Players can verify results independently from the platform.

2. Is the Randomness Verifiable?

A draw executed on-chain is only as fair as the randomness used to select the winner. If the random number is generated off-chain and simply recorded on-chain, the operator could still influence the outcome before committing it.

Verifiable randomness means the random number is generated using a cryptographic process that anyone can check. The most common standard is a Verifiable Random Function, or VRF, which produces a result along with mathematical proof that it was generated fairly.

What to look for: Documentation or platform explanation of how randomness is generated. Reference to VRF or equivalent on-chain randomness source.

3. Has the Smart Contract Been Audited?

Smart contracts are code, and code can have bugs. An independent audit by a reputable security firm checks the contract for vulnerabilities, confirms it behaves as described, and gives players an additional layer of assurance beyond the platform’s own claims.

An unaudited contract is not automatically unsafe, but the absence of an audit is a risk factor worth weighing. A clean audit from a known firm is one of the strongest trust signals a platform can provide.

What to look for: A publicly available audit report from a named security firm. The ability to read the report and confirm it covers the relevant contracts.

Kaching: The platform’s smart contracts have been independently audited. Audit report details are available on the platform.

4. Are Prizes Paid in a Stable Asset?

Winning a prize denominated in a volatile token means your payout value is determined by the market, not by how lucky you were. A prize worth $10,000 at the time of the draw might be worth significantly less by the time you claim it.

Prizes paid in a stablecoin like USDC hold their value from draw to result to claim. The number you see is the number you receive.

What to look for: Prize pool and payouts denominated in USDC or another established stablecoin rather than in the platform’s own native token.

Kaching: All prizes are paid in USDC directly to the winner’s wallet upon claiming.

5. Are the Economics Transparent?

In a traditional lottery, the house edge is rarely disclosed upfront. Players have no way to verify what percentage of ticket revenue actually enters the prize pool versus operating costs and profit.

A transparent on-chain lottery publishes its economics in the smart contract. Every fee, every prize allocation, and every treasury transfer is visible on the blockchain.

What to look for: Clearly stated prize pool allocation. No hidden fees beyond what is shown in the checkout flow. Ability to verify treasury transactions on-chain.

Kaching: Kaching currently charges no platform fees. All applicable costs including slippage and gas are shown transparently in the order summary before purchase.

6. Is There a Clear Claim Process With a Stated Window?

Knowing how and when you can claim a prize matters. A platform that makes claiming complicated, slow, or uncertain creates unnecessary risk for winners.

A well-designed platform has a clear claim process, states the claim window explicitly, and sends reminders before prizes expire.

What to look for: A clear Claim button in the platform interface. A stated claim window in the terms. Automated reminders before expiry.

Kaching: Prizes are claimed via the Claim button in the winnings section. The claim window is 30 days. Kaching sends automated email reminders before prizes expire.

7. Are There Geographic Restrictions You Need to Know About?

Most crypto lottery platforms have restricted jurisdictions. Playing from a restricted country creates legal risk for you and may result in forfeited prizes if your location is identified.

What to look for: A clearly stated list of restricted jurisdictions in the platform’s terms and conditions. Age verification requirements.

Kaching: Residents of the USA, Mainland China, UAE, North Korea, Iran, and other FATF high-risk jurisdictions are restricted. Players must be at least 18 years old.

8. Is the Platform Active and Maintained?

A smart contract lottery that has been abandoned by its developers is a risk. No team means no bug fixes, no security updates, and no support if something goes wrong.

What to look for: Recent draw activity visible on the results page. Active social channels. A support contact that responds. Evidence of ongoing development.

Kaching: The platform runs daily draws, has active social channels, and offers support at [email protected].

The Checklist at a Glance

FAQs

1. Why does it matter whether draws are on-chain? On-chain draws are permanently recorded on a public blockchain and can be independently verified by anyone. Off-chain draws rely entirely on the operator’s honesty with no way for players to check the result.

2. What is a smart contract audit and why does it matter? An audit is an independent review of a smart contract’s code by a security firm. It checks for bugs and confirms the contract behaves as described. A clean audit reduces the risk of funds being lost due to a vulnerability.

3. Why are stablecoin prizes better than native token prizes? Stablecoin prizes hold their value from draw to claim. Native token prizes are subject to market volatility, meaning your payout value can change significantly between winning and receiving.

4. What should I do if a platform fails one of these checks? Treat it as a significant risk factor. A single failed check does not automatically mean a platform is fraudulent, but multiple gaps in transparency or security should give you serious pause before participating.

5. Does Kaching meet all of these criteria? Based on publicly available information and the platform’s FAQ, Kaching meets all eight criteria on this checklist.