In the city of Aurangabad, India there a court hearing over Heikki, a tourist from Europe has been set. Heikki came to the monastery-temple cave complex “Ellora” drunk and harassed both tourists and pilgrims. Since there were a lot of witnesses, the local media was fixated on the trial and covered the story in detail. Today the final court session has been announced. The question is, will the court sentence Heikki to imprisonment or just a fine.
The locals are intrigued by the trial. They follow it in the media and discuss which punishment would be adequate for the rowdy tourist. It has been a long lasting tradition for the locals to bet on these types of events and discover who predicted the correct outcome. This time most locals have come to the conclusion that Heikki has to be convicted and should serve time in the local prison for his inappropriate behavior in a holy place. However, some consider prison as too severe of a punishment for this offence. Managers from travel agencies, hotel staff and others involved in the travel industry of Aurangabad as well as tourists who spend time there also believe that a fine would be punishment enough.
As Heikki is waiting for the court decision, thousands of betting enthusiasts are ready to place their bets on one of the two possible outcomes. In the old days, these people would have to trust their bets with underground bookies. Today, however, a decentralised peer to peer platform called PROOF OF TOSS has become very popular across the country as it offers users the service which makes local betting secure, trusted and scalable for any number of participants.
Let’s take a look at the process of betting if enthusiasts create the wager on PROOF OF TOSS peer-to-peer platform.
Local blogger Lochan creates a wager on 15th of April and places a deposit of 3000 TOSS tokens on the PROOF OF TOSS peer-to-peer platform, and publishes a link to it in his blog and over social media. The details in the event read as follows:
Event: trial over Heikki
Date and time the event starts: 2018, April, 23 at 9:30 a.m. UTC+5:30
Wager: will the court sentence Heikki to imprisonment or to fine
Possible outcomes: Prison / Fine
Result source: http://www.AurangabadTimes.com, http://www.ellora.com
6000 participants bet on the “Prison” outcome.
They place a total of 27 000 000 TOSS on this outcome.
4000 participants bet on the “Fine” outcome.
They place a total of 18 000 000 TOSS on this outcome.
Originator’s deposit = 3000 TOSS
Total = 45 000 000 TOSS (Bet sum)
After the court session and the final verdict, the DCJ (Distributed Crowd Judge mechanism embedded in PROOF OF TOSS) selects 50 judges to confirm the verdict within the platform. According to the rules of the system, each judge must make a deposit of at least 9000 TOSS tokens, the formula is as follows 1%/50*45000000. This is done to ensure that every judge has some “skin” in the game and is motivated to provide the correct result, else he/she loses their deposit.
Once the DCJ confirms that Heikki was sentenced to a fine, rewards and winnings are distributed amongst all participants of the event.
– Receives the deposit of 3000 TOSS
– Receives the reward of 3000 TOSS (the reward for originator is calculated by the formula Bet Sum * 0.5% but can not be more than the initial deposit). If Lochan was to place a deposit of 300 000 TOSS, his reward would amount to 225 000 TOSS (45 000 000 * 0.5%).
– Those who placed bets on the “prison” outcome lose their bets.
– Those who placed bets on the “fine” outcome receive rewards based on their bets.
For example, Nishant put 4500 TOSS on the winning outcome. Hence, his reward will be 11 137,5 TOSS.
27 000 000 / 18 000 000 = 1.5 (rate)
4500–1% = 4455 (1% is taken from all bets in order to reward the creator of an event and the judges of the DCJ)
4455*1.5 = 6682,5 (net winning)
4455 = returned (The tokens that Nishant placed the bet with are returned to him, minus the 1%)
6682,5 + 4455 = 11 137,5 TOSS
– Those who voted for “Prison”lose their deposits.
– Those who voted for “Fine” receive their deposits and gain rewards based on the total bet sum and their deposits.
Judge reward = (Sum of all bets * 0.5% + Judge deposits for the incorrect outcomes + Surplus of the originators reward (if it is less than sum of all bets*0.5%)) * Judge deposit/Sum of all Judges deposits for the correct outcome
DISCLAIMER: all cases are taken as examples and have no connection to real people or events