Proposal to Deprecate the VeLottery DApp Due to Lack of Transparency, Verifiability, and Fairness

Summary
VeLottery claims to offer a decentralized and fair lottery system. However, the core mechanisms behind winner selection and ticket management are not transparent or verifiable by users or the community.

We propose that VeLottery be deprecated or restructured until it adheres to minimum standards of fairness, auditability, and public accountability expected from any blockchain based system.

Problems Identified:
• No Public Draw Logic
VeLottery does not publish or explain how winners are selected. Without a deterministic formula, no one can verify the result.

A basic, transparent method such as:
keccak256(blockhash(drawBlock), index) % totalTickets
should be declared in advance and used consistently.

• Entropy Not Committed in Advance

The block used as a source of randomness (entropy) is not announced before drawing. This opens the possibility of manipulating results by choosing a favorable block after ticket locked end.

A secure system must announce a future block number to be used as entropy before it is mined, e.g.
Draw will be based on block #12,345,678

• Index Not Locked
If multiple winners are drawn using index values, those values must be fixed in advance.

For example, if 3 winners are to be selected,
the draw must use:

index = 1 → Winner #1

index = 2 → Winner #2

index = 3 → Winner #3

Any dynamic adjustment of index
values after seeing the blockhash would allow result manipulation.

• Ticket Ownership Not Verifiable
VeLottery does not offer a full list of tickets and wallet addresses that own them.

Users should be able to verify:

Which tickets they own

When they were minted

That no duplicates or hidden entries exist

Ideally, tickets should be viewable through a public page and link to on-chain minting proofs.

What Makes a Fair Lottery?
A truly fair and transparent lottery must have:

Public Draw Logic
The method for selecting winners must be open and published. Everyone should know exactly how the draw is calculated.

Pre announced Random Block
The block used as the source of randomness should be announced before it’s mined. This prevents manipulation after tickets are locked.

Fixed Indexes
The index used in the draw logic (e.g., 1st place = index 1, 2nd = 2, etc.) must be fixed and predictable. Changing indexes opens the door to abuse.

Verifiable Ticket Ownership
Each ticket should be publicly linked to a wallet and timestamp. This allows the community to verify who owned which ticket, and when.

Suggested Technical Fixes
• Publish a deterministic formula using on-chain data:
keccak256(blockhash(drawBlock), index) % totalTickets

• Announce drawBlock at least 1 block before it is mined
Example: Post on X :
“Winner will be drawn using block #18,000,000”

• Lock and publish index values used for selection
Example: index = [1,2,3] for 3 winners

• Publish full ticket list
Show ticketId, walletAddress, timestamp, and link to block explorer

Risks if Left Unchanged
If these problems are not fixed:

• Results may be manipulated internally

• Users cannot audit or challenge outcomes

• False sense of decentralization may lead to ecosystem distrust

• Regulatory risk if labeled as gambling without fairness guarantees

Call to Action
We propose that:

The VeLottery team must publicly publish the draw logic, entropy plan, and full ticket ownership data

If no improvements are made within a reasonable time frame, we recommend that the community consider removing the DApp from VeBetterDAO endorsement or official listings, in order to protect trust in the ecosystem.

A timeline be set to ensure compliance (14 days)

Closing Note
I don’t own a Moon NFT and cannot afford one, so I’m unable to move this to Governance myself.
If anyone from the community or foundation is willing to sponsor or carry it forward, I would greatly appreciate it.

I don’t care about credit , I just want the issue to be seen and addressed.