⛏️ PlotX Participation Mining
The first PIP (PlotX Improvement Proposal) has passed via on-chain governance on 21-Oct-2020 This will allow the user to be rewarded every time they make a prediction a on PlotX Prediction market.
Participation Mining is no longer live.
View the on-chain governance proposal or participate in the discussion for the PlotX Improvement Proposal further.
What is PlotX Participation Mining?
PlotX Participation Mining is an incentive program to bootstrap liquidity on the PlotX prediction markets.
Via Participation Mining, each time a user takes a long, neutral or short position on PlotX prediction markets, the user becomes eligible for incentives in PLOT in proportion to the number of positions they bought. The incentives can be claimed post the settlement of the market and shall be valid irrespective of whether the user wins or loses their prediction.
What does it mean for the user?
Ability to mine $PLOTs every time you participate on PlotX - no matter you win or lose.
Get higher rewards for being early in the market with lower-priced options
Program start date: 10 am UTC, 22 Oct 2020
Reward Distribution Details
Incentives per Hourly Market: 100 PLOT
Incentives per Daily Market: 1000 PLOT
Incentives per Weekly Market: 2000 PLOT
Program Duration: 2 weeks
The incentives are distributed across the participants based on the positions that they hold against total positions in the market.
PLOT tokens per participant = (No. of participant positions / total positions in the market) * Incerntives per Market
Incentives are distributed to participants across all options. This is over and above the reward pool that exists for winners as per the market participation.
Why PlotX Participation Mining?
PlotX protocol launched on the 13th October 2020 and has since seen 175 users participating in various prediction markets being created by Market Creators.
However a common question in the community is around - “what happens if I’m the only participant in a prediction market, and I end up losing my prediction at the settlement time?”. This is also reflected in one of the governance proposals initiated by a community member (0x3734…ebe4f) at https://govern.plotx.io/proposals/5 7
The default behavior of the PlotX protocol is that in the case of a single participant losing his/her prediction, the funds are moved to the DAO. These funds are then used to create a self-sustained DAO ecosystem which has to pay for the incentive of the market creator who spends gas fee for creating markets on PlotX, among other things.
This seems to be short term problem and as the protocol gains traction and user confidence, liquidity will increase. But for the protocol to gain traction it may be prudent to have rewards for bootstrapping liquidity on the prediction markets.
Taking a cue of bootstrapping liquidity from Compound Finance, COMP is given to users each time they interact with a Compound market (by supplying, borrowing, withdrawing, or repaying the asset). Similarly, Uniswap sponsors 4 markets (ETH/USDT, ETH/USDC, ETH/DAI, ETH/WBTC) by providing UNI tokens for liquidity providers in addition to the 0.3% fee.
In that spirit, a PlotX Improvement Proposal around Participation Mining was raised by one of the co-founders, Ish Goel on 20-Oct-2020 and upon deliberation by several community members, the proposal was passed via an on-chain governance vote.
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