By registering an account with Stox, anyone can connect to the open-source, decentralised platform and post a trade by submitting a prediction and wagering with STX tokens. Traders who profit from making predictions on the Stox platform, pay a trading fee on the eventual profits. The fee is shown clearly with each event on the prediction page and appears to be around 1%.
We saw that ‘events’ on the Stox prediction market platform are defined as speculative questions about the future, across almost any imaginable category. As long as events have ‘discrete and well-defined numbers of potential outcomes,’ they can be included on the Stox platform. Users trade on the Stox platform by submitting predictions about the outcome of numerous everyday events posted there, including weather, sports, finance, TV series and political events. Interestingly, the Stox platform is aimed at regular people who don’t have special knowledge or expertise in any of the event categories. As users come to the platform and submit predictions, STX token reserves are allocated to each event.
How Does the Stox Platform Create Prediction Patterns?
The Stox market prediction platform creates prediction patterns through an algorithm that is constantly assessing what ‘the crowd’ is thinking about every specified event posted on the platform. The algorithm is dynamic, which means that the assessments of events and subsequent prediction patterns and constantly evolving. Importantly, new assessments of the events posted on the platform, are made based on daily occurring events, and subsequent changes in crowd thinking. Updated assessments lead to new prediction patterns for each specified event and revised wagering prices. The platform indicates the percentage of users who have the same opinion about an event and creates trading prices for each event posted on the platform. As the opinion of the crowd changes, the expected results are adjusted on the platform. When the event date arrives, the closer the predictions are to the final result, the greater the reward paid out to traders who submitted predictions. Significantly, when a prediction is initialized, a reliable person is chosen to act as an oracle and block-chain report the final result of the prediction. Anybody who wants to challenge the result has 24 hours to appeal against the oracle’s report. However, the person filing the complaint must pay some STX tokens to show that the complaint is not false. We found the straightforward complaint process demonstrates transparency and the reliability of the Stox market prediction platform.
How are Events Added to the Stox Prediction Market Platform?
Stox has a unique ecosystem of providers, operators and users. Providers drive traffic into the ecosystem and develop new apps based on the original open source app developed by Stox. Operators are more visible as they create manage and resolve events on the blockchain, whilst users simply submit predictions on the platform. The platform potentially incentivises everybody participating in the ecosystem, with STX tokens. From the people who provide events on the platform in different markets and categories, to the users who wager on events using the wisdom of the crowd.
What is the Stox Cup?
An exciting aspect of trading on the Stox prediction market platform is the fun, community spirit generated on the platform by the monthly Stox Cup tournament. Stox lets traders test their brain power and prediction capabilities against other players in the Stox community. It does this by placing traders who make the most profit every month from placing predictions, on a leader board accord to the profits generated. Every STX token made in profit is converted to one Brain Power credit and the total number of BP points contribute to the ranking on the leader board. At the end of each month, Stox rewards the top 150 positions on the Stox Cup leader board with real STX digital token prizes for wagering on the platform. Importantly, to qualify for the Stox Cup tournament, players need to make correct predictions on events with ‘Win Real STX Tokens’ written across them or be placed within the winning ranks on the leader board.
What is the Stox Peer-to Peer App?
Stox is busy developing a fully functional prediction market app, which will be open source, to give everybody in the Stox ecosystem, on-chain access to Stox smart contracts over Ethereum. Importantly, the app will provide access to everything on the website, including content and listings from a decentralised cloud storage.