[English translation] Gnosis Feature: Part 1 "What is the Gnosis Token?"

Gnosis is a decentralized prediction market built on Ethereum. It aims to provide an open platform where anyone can forecast the outcomes of events, and to greatly simplify the development of customized prediction market applications. The cornerstone token’s crowdfunding (ICO) has been postponed repeatedly since 2016, and at present it seems likely to be around April…

Since official information has appeared in blogs, I plan to translate them in three parts from here on…!

What is the Gnosis Token? A New Token Model Based on Access Rights

Gnosis is a platform. Through network effects, it provides value to platform users and ensures stickiness. As the number of users and projects on Gnosis grows, market liquidity also increases. Increased liquidity means greater convenience for all users.

Our token model is designed to make deploying projects on Gnosis as attractive as possible to third parties.

Key Elements

・The total issuance of the GNO token is fixed (10 million). Up to 90% of the tokens will be sold via auction.
・When creating assets based on predictions (the prerequisites for trading), a 0.5% fee applies.(*1)
・The GNO token creates WIZ tokens. The more WIZ is used on the platform, the more WIZ is issued per GNO.
・WIZ can be bought back by paying a fee equivalent to 1 dollar (quite similar to KFEE).
・Fees can also be paid using tokens used in the market (ETH/BTC tokens, etc.). Once payment is completed, the fee is sent to a third-party auction contract and auctioned off in exchange for GNO.

Since the platform does not require rental fees, Gnosis allows purchasing the necessary amount of GNO tokens once and then using the issued WIZ tokens to pay Gnosis’ fees. At a very basic level, the GNO token functions as a fee-credit-generating device. As a result, using Gnosis provides access to the platform in the same way as when licenses are acquired. GNO and WIZ are planned to conform to ERC-20.

Now, let’s look at the details.