Business Model

Market Creators make a final decision about the % of fees they wish to impose within the prediction market (the min value is 5%). This fee structure has certain rules and ratios put in place to ensure fairness and good incentives for every participant. Let's go through a simple case where the amount of winnings is 2000 USDT and the market fee was set to 5% by the Market Creator. This gives us a $100 market fee (since 1900 USDT winnings are divided pro-rata to Stakers/Bettors):

Market Creator (35%): 35 USDT

Earn Network Treasury (35%): 35 USDT

Market Validators (15%): 3 Market Validators receive 5 USDT each. Not less than $1.5 per proper validation, max capped at $10 per validation.

Yield for stakers of $EARN token (10%): 10 USDT is transferred to the main staking pool of $EARN tokens as a reward.

Burn mechanism (5%): 5 USDT is transferred to a dedicated wallet which will be used to purchase $EARN from the open market and burn it.

Please note, the breakdown might change before we 'go-live' and thereafter. Adjustments might be needed on the live system to validate proper assumptions, ensuring that they provide enough incentives for every party in the practical, operating system.