[Japanese translation] Gnosis Feature: Part 3 "Why is Gnosis such a complex mechanism?"

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 crowdfunding (ICO) for its core token has been postponed since 2016, and at present it seems likely that it will be around April...

This is the third feature in a row continuing from the previous one. Let’s read the translation article right away.

Why is Gnosis such a complex mechanism?

When we introduced our auction and dual-token mechanism, the most common reaction was a single line: “Why is it so complicated? Why didn’t you follow the traditional model?” Let us answer those questions.

The primary reason is that we are true innovators at heart. The Gnosis team consistently questions existing systems. By discovering ways to improve efficiency and developing systems with a healthier incentive model, we first built a decentralized prediction market.

All decisions were made in pursuit of that goal. We believe that innovation is not an end in itself, but a solution to existing problems and inefficiencies. Below is an overview of the problems we tackled.

Gnosis Token Auction VS Traditional Token Sales (ICO)

Fixed token supply — no cap (e.g., Augur)
From the moment you purchase tokens, the number of tokens you receive per amount paid continues to decrease, with no lower bound.

Our model

From the moment of purchase, the number of tokens received per amount paid continues to increase. Therefore buyers are certain to pay the maximum amount per token.

At the time of purchasing, buyers decide how much they want to pay and how much they want to buy per token (i.e., considering the practical utility of GNO for the buyer, a fair cost that the buyer is willing to pay to obtain GNO).

Since the price of the token decreases from the first purchase, if the auction continues into the next block, it is possible for buyers to profit by receiving more than the planned purchase amount.