Hey DEFI TIMES community,
The betting industry has a number of issues such as a lack of transparency, charging high fees, and banning winning bettors. These issues arise due to a conflict between the two parties (betting companies and customers). Both parties want to make money. But the process of making money is always at the expense of the other side. Betting companies make money when their customers lose money. Customers make money while the company behind the bet is losing.
That's why betting companies generally have an incentive for their customers to lose. This leads to companies hiding information from their customers, banning winning participants, and charging massive spreads.
Few industries would profit more from blockchain technologies than the betting industry. Using a blockchain for your bet removes intermediaries with different incentives; nobody can ban you, and the fees are the same for all participants.
Today, we want to explore a way to use blockchain in the betting industry: SportX.
Let's dive into it!
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How SportX works
SportX is a protocol on the Ethereum blockchain, which aims to disrupt the betting industry. The entire backend runs on the blockchain, which makes it unstoppable, transparent, and not manipulatable.
You can create, process, and settle bets directly on the protocol. For example, you can bet on the results of a football game. If you are correct, you win money. If not, you lose. The betting mechanism is transparent, which is why you can see how the fees are configured before you place the bet. Anyone can see the rules.
SportX is a peer-to-peer exchange where fees are charged as a percentage of net profits. This removes the incentive for owners to ban profitable bettors, and instead encourages betting volume and liquidity.
SX as the native token
There are no conflicts of interest between parties, and the smart contracts treat everyone the same. Also, there is no information asymmetry between participants.
The protocol has a native token (SX) used by participants to decide on key protocol parameters collectively.
Users can stake SX tokens to be eligible for staking rewards. By staking their tokens, users can vote on governance proposals. They can decide how to spend the protocol treasury and a lot more.
Users can basically vote in any new features if the underlying proposal gets sufficient votes. They can change the protocol parameters, add tokenomics features, or pivot the use-case of the protocol.
Earn money betting on the Superbowl
Starting on February 1, users of the SportX platform will earn SX tokens by simply using the SportX platform. The mining program will last ten weeks.
In total, 200,000 SX will be allocated to users of the platform. The allocation will be proportional to the activity of the individual users. So, you don't need to hold massive amounts of tokens to earn significant parts of the token distribution, as is the case with most other liquidity mining programs.
The distribution solely depends on how intensively you use the SportX betting platform.
On February 7, the Superbowl takes place. By only betting on the outcome of the Superbowl, you will earn SX tokens. It doesn't matter whether your bets are correct; you will receive SX tokens nonetheless.
If your bets are correct, you will earn additional money, of course.
Depending on the mining program's success, SX holders can vote to launch additional programs in the future.
The SX token is capped at a supply of 1,000,000,000 SX, which are allocated as follows:
- 55.00% to the SportX community (550,000,000 SX)
- 22.86% to development team with 4-year vesting (228,554,913 SX)
- 17.14% to early backers with 4-year vesting (171,445,087 SX)
- 5.00% to strategic partners and marketing initiatives (50,000,000 SX)
The community fund
The SportX Community Treasury Fund will be seeded with 530,000,000 SX (53.0% of the total supply) in it. The SportX Community Fund is also where the exchange fees are collected. SX holders can vote on how to use the Community Treasury Fund.
SportX solves one of the central problems of the current betting industry: the lack of transparency, making it extremely difficult for participants to make money. Very few people make money in the process, and the ones, who do, get banned by betting companies.
No one can get banned by SportX as it is a decentralized betting platform on the Ethereum blockchain. The rules and fees are transparent and treat everyone the same.
SportX is another example of why decentralization makes sense. Central betting companies make money at the expense of the individual user, but not anymore.
The discussion around Robinhood stopping GME and AMC trading showed that we need censorship-resistant platforms. Not only for the trading of financial assets but also for as many other use-cases as possible. SportX is your censorship-resistant platform for betting.
All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.