PlotX is built by and for the Ethereum community. Ability to use all DeFi applications in ETH should be a right for the community. With this strong belief, the protocol has been designed in a way that people can predict using ETH and the PlotX native token.
The value proposition of the PlotX native token (PLOT) is as follows:
PlotX protocol uses an AMM algorithm which requires market initiation in intervals of 1h, 1d and 1w, by paying gas fee on Ethereum.
The Market Creator who pays the gas fee for market initiation can claim their incentives in the form of PLOT tokens. In order to provide these incentives to the market creators, the protocol charges a fee from the market participants. This fee is taken as a percentage of participation amount. For participations in ETH, the fee is 0.1%, while for participations in PLOT, the fee is 0.05%
Any leftover fees, apart from the incentives of Market Creators, are accrued in the DAO on-chain, which is available for the community to decide on how to use via on-chain governance.
Prediction markets are a way to sum opinions of many and capture what is known as the “wisdom of the crowd”. To be able to achieve that, it is critical for PlotX to reach the masses. If the community is able to achieve that, a new version of information will be created that is driven by true market opinions.
To reach the masses, the PlotX token provides virality by design via the Referral Bonus program.
Users can refer other users, and mine referral rewards. Referral rewards are implemented by using a non-transferable bPLOT token that is equal to PLOT at all times, but only usable within the PlotX markets.
IMPORTANT: The referral program tokens, bPLOT, can only be used to participate in the prediction markets, and cannot be dumped on exchanges. By using bPLOT tokens, users can predict and mine more PLOT tokens for themselves.
Another important factor for the protocol to succeed is to attract relevant communities that would benefit from predictions. For example, the community of LINK holders.
PlotX provides mineable Airdrop incentives for communities to start using the protocol.
Relevant communities, after passing through a governance vote, can mine airdrops on PlotX. Airdrop rewards are implemented by using a non-transferable bPLOT token that is equal to PLOT at all times, but only usable within the PlotX markets.
IMPORTANT: The mineable airdrop tokens, bPLOT, can only be used to participate in the prediction markets, and cannot be dumped on exchanges. By using bPLOT tokens, users can predict and mine more PLOT tokens for themselves.
To bootstrap and encourage liquidity on the PlotX prediction markets, the users are incentivized to stake their PlotX tokens prior to participating in the prediction market.
If they stake and play, they get extra rewards in proportion to the amount staked wrt to the amount used to participate. If a player plays with 100 PLOT tokens and stakes 1000 PLOT tokens separately, he/she gets 2x positions of a player who hasn’t staked at all. More positions lead to more rewards.
The good part being, even if the user loses in the prediction market, they will not lose the staked PLOT tokens.
The PlotX token also serves as a governance token. PLOT Token holders will be eligible for voting on proposals that will define the future of the PlotX Protocol. On-chain governance for PlotX is being launched from day 1 of the mainnet launch.
This means that the community will be able to vote on decision points like market dispute resolution, creation of new markets, implementing emergency pause and any other such decisions which shall result in a change in the smart contracts of PlotX
To bootstrap and encourage liquidity for the PLOT token, users who stake their PLOT tokens on specified PLOT liquidity pools on DEXs (to be announced) will be incentivised by getting extra PLOT tokens as rewards for providing liquidity.
To earn the yield farming rewards, liquidity providers on DEXs will have to lock their LP tokens on PlotX Staking Smart Contract.
The yield farming incentives will be distributed per second with no limitation on minimum staking days.