Social Prediction Market Making: Peer Staking

Abstract - Staking over others’ success

Peer Staking is a gamified investment mechanism where individuals can stake $AUT, predicting the growth of other members' Peer Value ($\upsilon$). It works as a social prediction market-making instrument, where Stakers can select the extent and the risk profile of their predictions, and are rewarded/slashed based on the accuracy of their predictions.

Details

• Holders can stake $AUT on the "future success" of other ĀutID holders (the growth of their Peer Value, $\upsilon$).

• Game-theoretical approach to strategic investments in Hub contributors based on their potential to grow their reputation within the ecosystem.

• Investments are possible only on stakees whose ĀutID is 5 periods or older.

• The period (D) of Staker's prediction needs to be lower or equal to the Age (A) of Stakee’s ĀutID.

• The stake needs to be equal to or lower than the monthly reward of the staker.

Gains & Losses from Stakes

• Basic "bookmaker" model for successful stake - rewarded in $AUT.

• The loss is proportional, meaning that it depends on the closeness of the forecast of the Staker to the final Peer Value achieved by the Stakee.

• In case of loss, 80% of slashed $AUT is burned, and 20% returns to the Treasury to be re-circulated in the ecosystem.