As we enter a new era of decentralized finance, Earn Network is excited to offer a sneak peek at our newest category: Prediction Markets. Powered by the blockchain, it democratizes forecasting by allowing anyone to participate in predicting future events. This open nature takes the potential of the prediction market to mind-blowing heights, attracting a diverse audience and increasing the utility of the $EARN token.
Prediction markets history and examples
The first decentralized prediction market, Augur, launched on the Ethereum blockchain in July 2018, marked the beginning of an innovative era in on-chain prediction markets. Since then, platforms like Polymarket, Hedgehog and PlotX have emerged in this space.
These markets are designed to engage communities in betting activities on a vast array of events. The concept is simple yet powerful: anyone can bet on any prediction market and earn rewards by being correct. What makes them particularly appealing is the secure, on-chain storage of the entire bet pool, eliminating unfair practices and ensuring transparency.
Currently, there are various types of betting platforms on the market, some of them are only focused on sports events and others have multiple categories. There is also a difference in how these platforms ensure that the outcome is correct, some are powered by an oracle to get accurate data, while others have human verificators.
After deep research, we understood the main weak points of many projects and decided to do it better.
Sneak peek into Earn Network Prediction Markets
The Earn Network is one of the most prominent in bringing multiple DeFi solutions to its platform and it will greatly enhance its offering, beyond already a few strong propositions of DeFi Pools & Restaking. As we enter the Prediction Market niche, we wanted to do it better than our competitors, that's why our new product will have many unique features that are going to make the process smoother and more profitable for everyone.
Starting with the fact that at the Earn Network anyone can create a prediction market without providing the mandatory initial liquidity. This way, anyone has very easy access to kick start their journey as a Market Creator to create many markets.
Anyone who would like to become a Market Creator will be able to choose a default cryptocurrency and set the fees as they prefer. The other default cryptos for the purpose of prediction markets will be $USDT and $EARN. The latter will provide a bonus amount of shares when you bet in any pool.
A key feature of the product will be the use of Market Validators. These users will have to stake $EARN tokens to verify correct bet outcomes and earning by doing so. If you want to become a Market Validator in the future, but you aren't an $EARN holder yet, head up to Gate.io or MEXC and get $EARN now!
Another advantage of our solution are its cross-chain capabilities, which add a lot of value in the accessibility field. We know how important it is to make our solutions available to users across different blockchains so that we can reach the most potential users and enrich different ecosystems with our exciting product. That's why Prediction Markets will be launched on a few chains and we will continue to add new ones.
Below you will find a sneak-peak into some of the exciting early beta of what we're working on:
Earn Token utilities
The $EARN token will play an integral part of the Prediction Markets category. Here's the list of key utilities:
- Payment for the market creation can be done in $USDT, though it will be cheaper to pay in $EARN (10% discount).
- The $EARN token will be supported by default in every single prediction market created. Even if Market Creators will decide to have their markets denominated in other tokens (XRP, AVAX etc.) participants still will be able to use $EARN (via swap under the hood).
- The $EARN token will give you more shares in the prediction market (+5% vs other tokens). This will incentivise bettors/stakers in the Prediction Market to buy the $EARN token directly from the exchange to have more chances to win.
- Market Validators must hold a certain minimum amount of $EARN to validate any market. This will ensure the correctness of the outcomes chosen for the market validation. $EARN token holders gain the ability to get part of the fees from any prediction market created via the market validation task.
As we gear up for the launch of our Prediction Markets, we invite our community to stay tuned for more detailed articles delving into the mechanics and benefits of Prediction Markets.
A full detailed article about Market Creators, Market Validators and the complete list of more utilities of the $EARN token (in conjunction with Prediction Markets category) will be released soon.
Explore the cutting-edge insights and innovation by delving into the comprehensive details outlined in the whitepaper.