Gnosis

  • Cryptoasset Report
  • October 4, 2018

Gnosis is an open-source, Ethereum-based platform that enables users to aggregate information via prediction markets.

Overview

Gnosis believes prediction markets are a potentially game-changing new tool for effectively aggregating information. Compared to similar existing tools, such as polls and surveys, prediction markets differ in that they utilize market forces to incentivize participants to ‘share information’ via buying stakes in possible outcomes, with the aggregate outcome price reflecting participants’ various dispersed knowledge.

Project Details

Co-founded by Martin Koppelmann, creator of the Bitcoin prediction market Fairlay, and Stefan George, Gnosis is an open-source, Ethereum-based platform that enables users to create oracle-agnostic prediction markets so to aggregate information. A smart contract ecosystem rewards users who successfully predict the outcome of a given event, with buy-in costs disincentivizing guessing and deception. Gnosis also offers developer tools for dApps that build on the platform by integrating information generated from a prediction market and suggests several use cases.

Gnosis’ Sight is Gnosis’ own regulated prediction market and uses the project’s ‘conditional tokens‘ to enable combinatorial prediction markets. Gnosis claims such markets will make more accessible financial instruments previously only available at a high cost, such as the ability to trade an asset under the condition that a specific event occurs—such as buying a tokenized British Pound contingent on the condition that no hard Brexit happens. Gnosis additionally developed the DutchX protocol before transferring protocol governance to the dxDAO in 2019. The DutchX protocol is a decentralized, ERC-20 token trading protocol designed by Gnosis to use Dutch auction mechanism to determine “fair” prices for even illiquid tokens.

Asset Details

Gnosis operates on a three-token model. One token, OWL, functions similar to a payment token and can be used to pay for platform fees, with one OWL being equivalent to $1 USD in fees. The GNO token, sold to investors, has one purpose on the platform: generating OWL tokens. Users generate OWL by locking a certain portion of their GNO tokens in a smart contract for a specified period of time. The longer the period and the greater the number of GNO tokens, the more OWL tokens the user earns. The final token, MGN, is designed to be used internally on Gnosis’ DutchX exchange as both an inflationary mechanism and reward for early, frequent exchange users. One MGN is generated for trading one ETH worth of any token and is automatically credited to users.

For additional insight and commentary on Gnosis, read Introduction to Gnosis

 

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