Predict to earn
The major way to earn tokens is to make correct predictions consistently.
In the Newwit platform, players can propose questions to predict. Initially, questions will be moderated by the Newwit project team as validators to ensure the questions are valid and outcomes are verifiable. Validators are also responsible for identifying a data source as the settlement criteria of the question. As the community grow, questions will be chosen and managed by the community. During each day, new questions of different topics will be released based on what happened/ will happen in the real world. Players then predict the outcome of these questions with a few clicks.
To engage in a prediction, each player needs to consume 1 Energy. 10 Energy would be provided for free to each player every day. 1 Energy would be replenished to players periodically over a day. However, each player is only allowed to possess up to 10 Energy at all times.
Unlike a prediction market where players need to buy and sell binary contracts which requires order matching, Newwit is much simpler. Players do not need to decide how much to bet and wait for the market making. Players just need to vote on the option they believe will happen. Each prediction costs exactly one Energy. Potential ([maximum]) rewards and losses are calculated in WIT (in-game currency) using a simple formula: Rewards = ( 1 - current percentage share of votes of the chosen answer) * 100 Loss = 100 * current percentage share of votes of the chosen answer For example,
In this simple design, the maximum payout in a single question is 100 WIT (could be adjusted in the future). The expected value of payout of any option is 0.
Once the outcome of a question is known, the validators will settle the questions immediately using the predetermined settlement criteria and data source. Rewards and losses in terms of WIT are updated to players' account.