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The Complete Flow

1

Asset Listing

Asset owner lists their asset on Tradmatrix with:
  • Asset details and images (up to 50 photos)
  • Total number of tokens
  • Price per token
  • Verification documents
2

Token Sales

Participants purchase tokens using USDC:
  • Connect Solana wallet
  • Buy 1 or multiple tokens
  • Each token = 1 entry
  • Sales tracked in real-time
3

Sold Out

When all tokens are sold:
  • Asset status changes to “Sold Out”
  • Funds held in escrow
  • Ready for winner selection
4

Winner Selection

Provably fair random selection:
  • Uses Entropy’s provably fair algorithm
  • Cannot be manipulated
  • Transparent on-chain
  • Winner immediately notified
5

Settlement

Automatic fund distribution:
  • 98.5% → Asset Owner
  • 1.5% → Platform Fee
  • Winner receives asset ownership

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Detailed Process

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1. Asset Listing

Asset owners create a listing by calling the create_asset instruction: 
// Example: $500K asset with 5,000 tokens at $100 each
const assetParams = {
  numberOfTokens: 5000,
  tokenCost: 100_000_000, // 100 USDC (6 decimals)
  assetOwner: ownerPublicKey,
  platformAuthority: platformPublicKey
};
The platform creates:
  • Asset PDA: Stores all asset information
  • Asset Vault: Holds USDC from token sales
  • Unique Asset ID: Auto-incrementing identifier

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2. Token Purchase

Users buy tokens by calling the buy_token instruction: 
// Purchase tokens
const tokenPurchase = {
  assetId: 0,
  quantity: 5, // Buy 5 tokens
  buyer: userPublicKey
};
Each purchase:
  • Transfers USDC to asset vault
  • Creates token PDA with unique number (0, 1, 2, …)
  • Updates asset’s tokensSold counter
  • Emits TokenPurchased event

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3. Winner Selection

When sold out, admin calls pick_winner instruction: The winner selection process is completely deterministic and transparent:
  1. Entropy protocol generates a cryptographically secure random value
  2. Calculates: winningToken = randomValue % totalTokens
  3. Looks up token owner from on-chain PDA
  4. Distributes funds automatically
  5. Emits WinnerSelected event

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Probability Mechanics

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Fair Odds

Your winning probability is straightforward: 
P(win) = (your tokens) / (total tokens)

Examples:
- 1 token of 5,000 = 0.02% chance
- 10 tokens of 5,000 = 0.2% chance
- 100 tokens of 5,000 = 2% chance

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Multiple Token Strategy

Buying more tokens increases your probability: 
Asset: 5,000 tokens @ $100 each
Investment vs Probability:

$100 (1 token)    → 0.02% chance
$500 (5 tokens)   → 0.10% chance
$1,000 (10 tokens) → 0.20% chance
$5,000 (50 tokens) → 1.00% chance

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Security Guarantees

Provably Fair Algorithm: Tradmatrix uses Entropy’s provably fair algorithm, which provides cryptographically secure randomness that cannot be predicted or manipulated by anyone, including platform operators.

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How Entropy’s Algorithm Works

  1. Commitment: Entropy provider commits to a secret seed before randomness is available
  2. Sampling: Solana validators produce unpredictable randomness through slot hashing
  3. Revelation: Pre-committed seed is revealed and verified on-chain
  4. Generation: Final random value is derived from both sources, making it impossible for any party to control
This ensures:
  • No single party can predict the outcome
  • The platform cannot manipulate the result
  • All participants have equal odds
  • Process is completely transparent and verifiable on-chain

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What Happens Next?

After winning:
  1. Winner notified via email/SMS/push notification
  2. Asset ownership transfer process initiated
  3. Legal documentation provided
  4. Ownership transfer completed

Next: Benefits

Learn about the benefits for asset owners and participants