The vote markets will not stay as merely as a collective intelligence and consensus tool.
More effective price discovery will arise from those with skin in the game. For those users who wish to increase their exposure to these market bets, a staking system will be released thatwill allow users to stake $FVT on the market prediction outcomes.
Architecturally, the staking system will be a different layer from the voting system reward pool.
Our first staking system will allow staking $FVT on an identity for a single round of a single vote market. This identity may or may not belong to the staker, therefore this will be thefoundation of social trading, betting on an identity that does not belong to you.
In this formulation, every (round, tournament) pair will have a collection of stakes, up to a maximum of one for every identity. The set of identities for which there are non-empty stakes will essentially be in competition with each other, with the total $FVT stake gettingredistributed among the various stakes in proportion to how their identity voted on the correct outcome. In this game, the losers pay the winners.
For example, suppose there are 3 identities, Alice, Bob and Caroline, and they vote on the winning choice with votes 1, 3 and 0, respectively. Suppose further that the stakes on Alice, Bob and Caroline are staking 10, 20 and 30 $FVT, respectively.
Then once the winner is announced, the total stake on that round (10 + 20 + 30 = 60 $FVT) would be distributed proportionally to the stakes, with 1 / (1 + 3 + 0) = 1 / 4 of the 60 = 15 going to the stake for Alice and 3 / (1 + 3 + 0) = 3 / 4 of the 60 = 45 going to the stake for Bob, and 0 going to the stake for Caroline. In this situation, the stake for Alice will have started at 10 and ended at 15, a 50% gain, and the stake for Bob will have started at 20 and moved to 45, a 125% gain. In essence, the losing bets are reflowed to the winners. Natural selection is beautiful.
10% of the losing stake will be burned in each round.
The staking system is still in the design phase, however is targeted for release in the Obelisk phase of the network. It will allow fair staking of multiple coins simultaneously, a first in both the cryptospace and the wider financial system, as far as we are aware.