Prediction Markets Fundamentals

Question 1

What makes Precog different?

Accepted Answer

Precog is different in several key ways: 1) Token-agnostic - Use any ERC-20 token, 2) Multi outcome - Ask anything, not just Yes/No, 3) Liquidity efficient - Better price signals with less liquidity, 4) Open source and fully onchain, 5) Markets that generate insight, not just noise.

Question 2

How does Precog work?

Accepted Answer

Precog works in 4 steps: 1) Create a Market: Anyone can propose a question about the future, 2) Add Liquidity: Funders back the market to make it tradable, 3) Trade & Predict: Users buy outcomes they believe will happen. Prices reveal consensus, 4) Resolve: Once the outcome is known, the winning side gets paid.

Question 3

What is Precog's mission?

Accepted Answer

Precog is building the cypherpunk prediction market. Their mission is to turn collective intelligence into better decisions. Not just another casino, but a platform for serious forecasting. Because when you predict well, you understand the present. And when you understand the present, you can shape the future.

Question 4

What is a prediction market?

Accepted Answer

A prediction market is a financial market where participants trade shares based on the probability of future events occurring, allowing for crowd-sourced forecasting.

Question 5

How do prediction market shares work?

Accepted Answer

Prediction market shares represent probabilities of specific outcomes. Their prices fluctuate between 0 and 1, reflecting the market's collective estimate of the likelihood of each outcome.

Question 6

What is market resolution in prediction markets?

Accepted Answer

Market resolution is when the predicted event occurs and the outcome is determined. Winning outcome shares are redeemed for the full share value, while losing outcome shares become worthless.