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 (30%): 30 USDT

Earn Network Treasury (30%): 30 USDT

Market Validators (13%): 12.5 USDT total is split pro-rata for all market validators that suggested the correct outcome.

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

Incentives for Bettors and Market Creators (5%): 5 USDT is transferred to a dedicated wallet which will be used to distribute rewards to top bettors and best market creators.

Buy-back mechanism (2.5%): 2.5 USDT is transferred to a dedicated wallet which will be used to purchase $EARN from the open market and burn it.

Burn mechanism (2.5%): 2.5 USDT is transferred to a dedicated wallet which will be used to purchase $EARN from the open market and burn it.

Oracle of Wisdom NFT Holders (6.7%): 6.7 USDT will be added as rewards to the NFT staking pool.

Golden Tree of Fortune NFT Holders (0.3%): 0.3 USDT will be added as rewards to the NFT staking pool.

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.

Trading Bets

Our trading model will utilize a ranged dynamic fee based on the probabilities of the outcomes. Lower-probability outcomes will have a lower fee, while the most popular ones will be charged a higher fee.