FME (Free Method of Entry via social activities) and Auto-Entered $WBALL holders have the same odds of winning. (1 in # of eligible wallets)
FME and Auto-Entered $WBALLS holder winners receive 10% base pay, in both draw types. (For off-stream rewards and on-stream rewards)
$WBALL holders receive a bonus uplift in addition to the 10% base pay, 100X their % holdings of the $WBALLS supply, in both draw types.
Total prize amount for each drawing is capped at 100% of the available prize pool.
Winning Balls Sweepstakes Rewards Structure
Example 1: FME winner, holds 0 $WBALLS
Total Off-Stream Creator Rewards Pool for Cycle: $3000 worth of $SOL.
Base Prize: 10% of pool=$300 worth of $SOL
Tax Withholding: Below $600 threshold for mandatory withholding. Winner is responsible for reporting the full $300 FMV as income on their tax return and paying any applicable taxes.
Example 2: Auto-entered wallet #15 holds .5% $WBALLS supply (5M $WBALLS)
Total Off-Stream Creator Rewards Pool for Cycle: $5000 worth of $SOL
Base Prize: Wallet #15 wins 10% of pool = $500 worth of $SOL
Holder Bonus: .5% X 100 multiplier= 50% of remaining pool ($4500/2=$2250 worth of $SOL)
Total Winning Amount: $2,750 worth of $SOL.
Tax Withholding: Because this is over the $600 threshold, a mandatory 24% tax withholding applies ($660 withheld).
Total Pay Out: $2,090 worth of $SOL.
Reporting: We report the full $2,750 to the IRS via Form W-2G (using wallet ID), with withheld $660 remitted via Form 945.
Example 3: Same scenario as Example 2, but during On-Stream Rewards Draw where there is a bonus ball possibility.
#015 + Bonus Ball is drawn. (Prize entitlement bumped up to 100% of pool)
Total Winning Amount: $5000 worth of $SOL.
Tax Withholding: Mandatory 24% withholding,
Total Payout: $3,800 worth of $SOL.
Reporting: Winning Balls Sweepstakes reports the full $5000 to the IRS via Form W-2G (using wallet ID), with withheld $1,200 remitted via Form 945.
Example 4: Total Prize Pool is $605 worth of $SOL
Winner Details: Winner holds 1% of $WBALLS supply, entitling them to 100% of the prize pool.
Total Winnings: $605 worth of $SOL.
Tax Withholding: 24% federal tax withholding applies ($605 × 0.24 = $145.20).
Net Amount Received: $605 - $145.20 = $459.80 worth of $SOL
Reporting:We report the full $605 to the IRS via Form W-2G (using wallet ID), with withheld $145.20 remitted via Form 945.
