Earn Network vs. Polymarket: Prediction Markets Capability and Revenue Potential
Prediction markets are gaining popularity in blockchain, with Earn Network set to launch its own. This article compares Polymarket and Earn Network, highlighting Earn's unique features like utility NFTs, decentralized market creation, and multi-chain support.
Introduction
Prediction markets are rapidly gaining traction in the blockchain space, offering unique opportunities for users to bet on the outcome of future events. As the Earn Network prepares to launch its own prediction markets, it's essential to understand the potential of our product by looking at the success of existing platforms like Polymarket.
This article examines the mechanics of prediction markets, the differences between Polymarket and Earn Network's upcoming product and the potential volume that the new product could generate.
Prediction Markets at Polymarket
Polymarket is the world's largest prediction market platform, allowing users to bet on future events in sports, politics and pop culture. The platform provides real-time probabilities for various outcomes as indicated by share prices. For example, if a share price for an event is 72 cents, it implies that there is a 72% chance that the event will occur. Users can profit by buying shares where they believe the true probability is higher than the current market price.
Despite its innovative approach, Polymarket has several limitations:
Limited Flexibility: Users can only "bet" using a single token, specifically $USDC. With deposits limited to Ethereum and Polygon, users who want to use other networks are limited.
Centralization: The platform does not fully leverage the decentralized nature of cryptocurrency. Crypto is primarily used as a payment method rather than realizing full potential for decentralization.
Market Selection Control: Only the Polymarket team can decide which markets to launch and how to resolve them, limiting user input and variety.
Differences Between Polymarket and Earn Network's Prediction Markets
- Utility NFTs: The Earn Network introduced utility NFTs that provide users with additional benefits and rewards within the prediction markets. These NFTs can enhance user engagement and provide long-term value.
- Decentralized Market Creation: Unlike Polymarket, where only the platform's team can create markets, the Earn Network will allow any user to launch and earn from their own markets. This democratizes the market creation process and increases the variety of available markets.
- New Engaging Roles: The Earn Network introduces two key roles to improve decentralization: market validators and appealers. This system ensures a democratic and community-driven process, enhancing transparency and trust in the prediction markets.
Market Validators stake EARN tokens to verify outcomes, earning rewards for accuracy and honesty.
Appealers can challenge incorrect outcomes by staking tokens and betting against validators. If successful, appealers win the validator's stake, ensuring fairness and accuracy. - Customizability and Multi-chain Support: The Earn Network offers greater customizability, allowing market creators to set their own rules and parameters. Additionally, users can bet using different tokens across multiple chains, providing more flexibility and accessibility.
- Token-Based Betting: Instead of buying outcomes with a single token like $USDC on Polymarket, the Earn Network will facilitate token-based betting, enabling users to use various tokens for their bets. This approach is more in line with the decentralized nature of blockchain technology.
Potential Volume and Revenue for NFT holders
Given Polymarket's impressive monthly volume, the potential for Earn Network's prediction markets is substantial. Polymarket has a peak monthly volume of $111 million.
Assuming a 5% fee structure, this translates to $50,000 in monthly revenue. Oracle of Wisdom NFT holders earning 6.2% of the fees would collectively receive $3,100. With 50 Oracle of Wisdom NFTs, each holder would earn $62 per month or $744 per year, resulting in an impressive 300% APR, not including the potential appreciation of the NFT price.
To acquire your own NFT, please visit one of the NFT Marketplaces, like Ebisu's Bay ,where NFTs are available to trade on the secondary market.
Additionally, $EARN stakers would receive 16% of Prediction Markets fees in rewards that would translate to over $8K min. in rewards per month, adding another layer of utility for the $EARN token. If you want to participate in the future fee sharing program, consider getting your $EARN now while it's still cheap through one of the available markets.
Conclusion
As the Earn Network prepares to launch its prediction markets, the potential for growth and user engagement is huge. By addressing the limitations of existing platforms such as Polymarket and introducing unique features, the Earn Network is poised to become a significant player in the prediction market space. Projected volumes and revenues underscore the lucrative opportunities for participants, especially NFT holders who can earn substantial returns. Stay tuned for the launch and explore the innovative world of prediction markets on the Earn Network.
