Gnosis (GNO) is a prediction market platform built as a decentralized application (dapp) on the Ethereum network. The platform includes a multisig wallet as well as a Dutch Exchange, but we’re just going to focus on their flagship product, the prediction market, for this guide. More than just building a prediction market, though, Gnosis is creating an entire infrastructure layer that you can use to build your own prediction market app.
Gnosis allows you to create arbitrary events to make predictions on any information like, who becomes the next president of the United States or what will be the stock-price of Apple on date X. The Gnosis ICO started: 2017-04-24.
A prediction market utilizes user predictions to aggregate information about future events. Users in the market trade tokens that represent the outcome of a certain event. Because some outcomes are more likely to occur than others, these tokens end up having different values in the open market.
As the time passes or related events unfold, some token outcomes may be more likely to happen thus increasing their value. Once the event occurs, the tokens representing the final outcome receive full value while the rest of the tokens become worth nothing.
Gnosis Core layer provides the foundational smart contracts for Gnosis use: event contracts that are governing the outcome token creation and settlement, and a market mechanism. This layer is and always will be free and open to use. The only process that incurs fees is the outcome token creation, which has a maximum fee of 0.5 percent, and affects traders buying outcome tokens from the market maker. This fee may be reduced by Gnosis in time. Creating new markets carries gas costs only. Instead of grasping at the maximum possible fees while remaining competitive, we feel that it is prudent to eliminate fees at the most basic contract level. It should be in every party’s best interest to use the existing open source and feeless contracts instead of deploying their own version.
The Gnosis Service layer will offer additional services on top of Gnosis Core and will use a trading fee model. These services will comprise optimization tools like chatbots and stable coins. More features may be introduced as deemed useful. These components are necessary for most consumer applications building on Gnosis. While some applications and participants will interact with Gnosis on the Core level, we are confident that these services will be used widely.
On top of the Services layer (or in some cases, just Gnosis Core) is the Gnosis Applications layer. These applications are primarily front-ends that target a particular prediction market use case and or customer segment. Some of these applications may be built by Gnosis, while others will be built by third parties. Our vision for Gnosis is to have a wide variety of prediction market applications built atop the same platform and liquidity pool. These applications will likely charge additional fees or use alternative business models such as market making, information selling, or advertising. As we’ll see in the next section on tokens, many Gnosis applications may include token holding as a core component of their business model.
Gnosis Coin (GNO)
The tokens that were sold during the Gnosis token sale on April 24th, 2017 are known as Gnosis tokens, or GNO. This was the only time that GNO tokens were created, and the total supply of GNO is fixed to 10 million GNO which are tradable on several exchanges.
Fees will be charged to participants for using Gnosis as a platform every time new outcome tokens are created. ERC20 compatible outcome tokens are created for every event outcome. That means that every event contract will be associated with at least two outcome tokens (for a prediction market asking "Where will Amazon locate its next headquarters?", the outcome tokens would be a) Phoenix, b) Chicago, c) Austin, or d) other). These platform fees can be paid in OWL tokens. One OWL can be used to pay for the equivalent of one USD in fees. While paying fees in OWL is the expected and preferred form to pay fees, alternatively, fees can also be paid with the token a prediction market is traded in. This ensures efficient markets even under a temporary shortage of OWL tokens. In addition to paying fees in OWL, some prediction markets may be even traded in OWL. In this case, predictions and initial funding can be made with OWL.
Gnosis team held an ICO of the project, collecting the planned amount of $ 12.5 million in just 10 minutes.
The Gnosis ICO started on April 24 at 17: 00 GMT with a price of $30 USD per 1 Gnosis token (GNO). After 10 minutes, the tokens were sold to 762 investors at the final price of $29,8488 or 0,597 ETH per a Gnosis coin. Thus, it was possible to attract 250,000 ETH, which is equivalent to $ 12.5 million. as indicated on the website , the ICO was organized on the principle of the Dutch auction, when the highest price is set at the beginning and gradually reduced to the one to which the first buyer agrees. In other words, users themselves determine the maximum price of Gnosis coin they are willing to pay for tokens. According to the organizers, this was done in order to prevent excessive hype at the start of ICO sales.
Exchange Gnosis coin (GNO)
GNO is an ERC20 token, so you can store it in any ERC20 compatible wallet. Your safest option is to use a hardware wallet like the Ledger Nano S. You should also consider MyEtherWallet to store your GNO – a free, albeit, slightly less secure choice.
Gnosis also provides a LightWallet and will be releasing the Gnosis Safe wallet sometime this year.
Gnosis Price (GNO)
GNO market cap on 4 JULY 2018 was: $120,367,172
GNO price on 4 JULY 2018 was: $108.97
The Bitcoin Wiki provides a relevant Gnosis price and market cap of GNO coin:
Gnosis X is a recurring developer competition designed to encourage developers to build dApps on Gnosis. The aim of the challenge is to create an innovative and well thought prediction market use case on top of Gnosis. Through the year we will be announcing different categories which will be the main topics for the dApps. The participants will have at least three months to develop their application. Anyone can participate either individually or in a team. The submission will be judged by a jury consisting of Gnosis team members as well as changing blockchain and business experts.
The dApps should strive to aggregate information, enable its free flow and carry a clear value-add for the designated category. To maximize the reach of the dApp it should be easy to use and have an appealing UI. The best application built on top of Gnosis will be rewarded with GNO tokens worth $100K. 40% of the prize will be distributed immediately after the winning dApp is announced. The remaining 60% will be released in the following 6 months after certain milestones are reached. We will offer dedicated developer support for participating teams. We highly encourage everyone interested in building a dApp on Gnosis to participate in our Development Incentivization program.
Gnosis Y will be an ongoing, open-ended developer program. It will focus on fundamental questions about the blockchain technology and prediction markets applications. Our long term goal is to support the community creating and promoting decentralized prediction markets on Gnosis.
Due to our aspirations for what Gnosis may one day become, the Gnosis team exercised extreme legal diligence in the lead-up to our launch. This diligence includes significant expenditures on several law firms around the globe to evaluate the implications of our structure, token launch, and operations. In the United States, we have worked closely with Perkins Coie. In our home jurisdiction of Gibraltar, we are working closely with Isolas and in Germany we are represented by Baker Tilly. We are actively seeking advice from regulatory bodies and are striving to shape Gnosis into what we hope is a model of regulatory compliance for decentralized applications and token launches. Due to the retrospective nature of regulatory action, the Gnosis team can make no guarantees that all our arguments will always eventually hold up in any given jurisdiction.
- Gnosis website
- Gnosis Twitter
- Gnosis Reddit
- Gnosis on BitcoinTalk forum
- Gnosis price and market state on Coin360