Hi Guys this a repost from my reddit post: https://www.reddit.com/r/cardano/comments/js9ili/announcing_adalotto_alpha_the_decentralized/
My name Clark and I am the operator of the stake pool ADAPH, along with my co-operators we are proud to present our biggest contribution to the Cardano Community yet.
You might’ve known me as the guy who failed to maintain TipADA Project (I deeply apologize) or you might know us as the group that discovered the Ryzen Bug that caused us to obtain 12,000+ ADA but returned it to the rightful owner instead of keeping it a secret. (you can read more about it here: AMD Ryzen firmware - report on recent patch ) or you can ask @MasterKenobi 
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But really, we are just a humble group of developers from the country of the Philippines, but enough introduction though, we are here to talk about ADALotto.
ADALotto (Alpha) - Decentralized Lottery: https://lotto.adaph.io/
our humble website
We are immensely proud of this product, although it’s far from perfect and complete, we worked extremely hard on it. But what is ADALotto and how does it work?
Well basically, it is a system where Cardano users can predict numbers and be rewarded with ADA if they managed to predict the correct combination.
So, who decides the numbers? Great question! The Cardano Protocol itself and the users of the network decides!!! DECENTRALIZATION
But how? We will be posting a more detailed information, blog posts and white paper soon. For now, a brief explanation would be that:
- First, we send a transaction with metadata information containing the game mechanics.
We call this the ADALotto GameGensisTX
- In this example, metadata tells us that you will have to predict a combination of 1 digit(s) that costs 1 ADA or 1,000,000 Lovelaces for each prediction or ticket.
- It tells us that the base prize or the pot money is 1,000 ADA and for each ticket or prediction made during the round we will add 0.7 ADA to the base prize
- Then our frontend website and client application connects to a custom GraphQL backend that is synchronized to the Cardano Blockchain Database via DBSync and display all the information directly from the blockchain to the users, calculating it block by block right in your browser.
- Users that will want to participate in the prediction will simply download our open-source desktop client (only for windows for now) and start predicting. https://github.com/ADAPhilippines/ADALottoDesktop (the code is very messy right now sorry)
The Windows Application
- The metadata tells us that your predictions are only valid after 4320 blocks since the transaction has been created.
- If there is no winner then it will accumulate the current pot and move on to the next round, all previous tickets will now be invalid. Then another round of prediction commences until a user will win the game.
- Otherwise, if a user wins, the user can expect a payout via the wallet it used to send the ticket which will be verifiable through the blockchain for maximum transparency.
- When the block interval is reached the “DRAW” will begin, we will then look at the Block size of that exact block and determine the winning number
- The rules are quite simple, the block must have at least one transaction and we will get the last two digits of the blocksize and declaring that as the drawn number. The digit must not be zero
- We repeat this for the next block until we get the number of digits required completing the combination
- If the current block being scanned does not fit the criteria it is skipped
- More detail on the website and whitepaper coming soon, as we are still incredibly early phase in the development
Obviously, this all very verbose in detail and all but we plan to publish an infographic and maybe a video for a better explanation of how this all works.
But who releases and keep the funds? For now, this is the only centralized part of the system we will be the custodians of the funds while the game is still being played and we will manually release the payouts every time there is a winner. And we are securing the funds with the same security measures that we use to secure our ADAPH Pool Pledge.
But decentralization is the goal here, So as Goguen comes to life we plan to move all the “squishy” parts of this system into smart contracts, we plan to develop a native asset called “LOTTO” and anyone can come and create thier own rules with the system or even vote for the mechanics. And as this is open source anyone could just easily copy our system and run thier own version. The possibilities are endless
Finally, we were motivated to do all this to show that being a stake pool operator and a pillar of the Cardano network is a business and not a game, instead of complaining about the status of things cough parameters 
although we understand that challenging the system is a good thing. Being a not popular stake pool ADAPH, we knew that we had to make something big.
So, we decided the following:
10% of the prize pot will be donated to the Cardano treasury to contribute to Project Catalyst, To fund more project as much as we can and grow the ecosystem.
10% will be distributed to all ADAPH Pool delegators according to the percentage of thier delegation
10% will be claimed by us ADAPH to continuously maintain and develop the project.
The remaining 70% will then be given to the game winner(s).
To Celebrate the Alpha Launch we are running a 1 Digit Game with 1,000 ADA Base Prize, or simply put if you can predict a number from 1 - 99 in the next 20 hours you can win 1,000 ADA 
, Good Luck to everyone will participate!
We are very enthusiastic of what Cardano can do; we even think with the current knowledge that we have we can contribute to the Decentralized Wikipedia that everyone’s been talking about. We have a lot of plans for the future
We hope you guys like it; we promise to provide more details soon. But for now, we invite you guys to try out the Alpha version and give us feedback!
You can reach us via our Teams Chat or Contact us on Twitter or follow our sub reddit r/adalotto for further announcements
Thanks, Clark~
P.S I’m sure you have a lot of questions so please comment it down below. I will try to answer as much as I can!
