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What is Tangle?
Tangle is a trustless, decentralized Neblio Application for prediction markets.
The outcomes of Tangle's prediction markets are chosen by users that hold Tangle's native TGL token, who benefit when an outcome is achieved and, in return, receive settlement fees from the markets. Through the use of Tangle, users will have the ability to position in prediction markets at minimal cost capitalizing on the efficacy of the Neblio platforms low transaction costs.
Why Tangle?
From a historical standpoint, prediction markets have been under the control of central authority. The simplest way to aggregate positions in a prediction market is for a trustworthy entity to maintain a ledger; similarly, the simplest way to determine the outcome of an event and distribute payouts to traders is for an impartial, trusted judge to determine the outcomes of the markets. As is obvious, centralized prediction markets inherently carry many risks and limitations: they do not allow global participation, they limit what types of markets can be created or positioned, and they require traders to trust the market operator.
Tangle aims to resolve markets in a fully decentralized way through utilization of the Neblio Blockchain. The only role of the Tangle developers is to push opcodes to the Neblio Network and automate APIs for its creation, reporting and dispute processes. The entire procedure results in complete automation. Tangle allows information to be migrated to the blockchain without relying on a centralized authority.
How does Tangle work?
Tangle prediction markets consist of four static phases and one dynamic phase : create, position, report, settle and the dynamic phase of dispute.
- Create - Markets about any upcoming event can be created by users that possess the requisite amount of TGL. The market creator chooses a resolution source to determine the outcome such as “CoinMarketCap.com” for the price of BTC, ESPN for Tennis Results, or the address of a particular API endpoint. The market creator has the ability to set the entry fee and all markets are binary options (Yes or No). The creator must also commit to a prediction.
The creator earnings is fixed at 10%. If the creator is unsuccessful during the outcome. The 10% fee is forfeited and awarded to the opposing buyers that won.
- Position - Market participants forecast the outcomes of events by completing a position of those markets. Once each participant places their position, Tangle's engine then creates a complete set of shares for each individual. A 10% position is required to enter a market.
- Report - Once a market event occurs, the result must be finalized for settlement to occur. A probabilistic cycle is then activated. Results are finalized by Tangle’s engine which provides a report through the market creator on the outcome of the real world event.
- Settle - Tangle levies fees when markets are being settled. Tangle levies a fee to create the market during settlement and if called, a fee for disputant success may also be imposed. Both of these fees are proportional to the amount being paid out. The creator fee is fixed at 10%. Disputant success is 5%.
- Dispute - After the initial report, any TGL holder with the requisite amount has 120 hours to dispute a market's tentative outcome. If the dispute is successful, a financial incentive matching 5% of the outcome is paid to the disputant. Where results of a sporting event are usually final, the results of a political event may change and as such the need for a disputant is critical.
Anyone holding the requisite amount of TGL (41,989 TGL) can create a market based on any real-world event. Trading begins immediately after market creation, and all TGL holders are free to position on any market. After the event on which the market is based has occurred, the outcome of the event is validated through an API call. Once the outcome is determined, traders can close out their positions and collect their payouts.
Tangle has a native token, TGL (TGL). TGL is needed required by all parties who participate in the market. Although TGL plays a central role in Tangle’s function, it is not used as for financial hedging - Neblio’s native currency NEBL is exclusive for this purpose.
Use Case Example
Token Economics
Symbol: TGL
Type: NTP-1
Initial Value: $4198.90 = 41989 TGL
Earnings
- Market Creator: 10% (~41989 TGL to be a market creator)
- Disputant: 5% (~41989 TGL to be disputant)
Token
- Total Supply: 12,500,000
- Circulating Supply: 10,250,000
Sale
- 65% - Public Sale: 8,125,000 (0.12)
- 16% - Presale: 2,000,000 (0.10)
- 10% - Team: 1,250,000
- 8% - Private Sale: 1,000,000 (0.05) - 6 month lock-up period*
- 1% - Bounty: 125,000
Funds Usage
- Marketing - 25%
- Development - 55%
- Listing/Litigation - 20%
Timeline
Team
Useful Links
