Prediction markets are a way to sum opinions of many and capture what is known as the "wisdom of the crowd". To be able to achieve that, it is critical for PlotX to reach the masses. If the community is able to achieve that, a new version of information will be created that is driven by true crowd opinions.
In order to attract the wisdom of the crowd PlotX aims to solve the challenges faced by traditional centralized prediction markets. There are 3 core challenges that PlotX solves: counterparty risk, high cost and inability to showcase provably fair settlements of markets.
The DeFi ecosystem is yet to innovate with crypto-native prediction markets. Early attempts to launch Prediction Markets on Ethereum have suffered due to a lack of focus on building crypto-native markets and a lack of maturity of the ecosystem back in 2017/2018.
PlotX is a DeFi prediction protocol that is native to the crypto community, with the following key parameters:
PlotX Community stands by the ethos of Abraham Lincoln's very famous saying: "The best way to predict your future is to create it". A critical aspect of PlotX growth is to drive education and research for the community to understand the value add and also the risks associated with prediction markets.
PlotX community members are called PLOT Heads and they are the driving force behind the PlotX movement. The PLOT Head community follows the 2ED principle - Educate, Engage & Drive adoption
Existing platforms like Synthetix, Augur and others have done a great job at kickstarting the innovation behind prediction markets. However, these projects were unable to bootstrap liquidity and provide seamless user experience in their attempts. PlotX aims to solve these shortcomings with the following key features:
PlotX also provides risk deleverage that allows users to limit their risks while buying positions, unlike traditional all-in binary options.
The protocol & dApp follow a pragmatic on-chain governance approach, powered by the GovBlocks smart contracts (the solution used by Nexus Mutual).
To bootstrap and encourage liquidity for the PLOT token, users who stake their PLOT tokens on specified PLOT liquidity pools on DEXs (to be announced) will be incentivised by providing extra PLOT tokens as rewards for providing liquidity.
To earn the yield farming rewards, liquidity providers on DEXs will have to lock their LP tokens on PlotX Staking Smart Contract. The yield farming incentives will be distributed per second with no limitation on minimum staking days.
Users are incentivized to stake their PLOT tokens prior to participating in the prediction market, in order to earn extra positions and thus extra rewards via the stake multiplier.
The best part being, even if users lose in the prediction market, they will not lose the staked PLOT tokens.