Introduction
We are thrilled to introduce Crypto Ultra, the latest innovative financial product on the EMDX platform. Crypto Ultra leverages the predictive power of its participants to create an engaging and potentially lucrative experience. This new instrument allows users to forecast the future prices of digital assets and win substantial prizes based on the accuracy of their predictions.
Entry Mechanics
Participating in Crypto Ultra is straightforward. Users can enter by purchasing a ticket, priced at $5 USDC for the first version. In future iterations, ticket prices may vary based on factors such as the probability of success and the remaining time until the pool closes. Participants select a price point on the future value of the underlying asset, with price points available in increments of 1/10^decimals. This flexible configuration ensures a wide range of options for participants.
Winning Criteria
Winners are determined by the accuracy of their price predictions compared to the actual price of the underlying asset at the end of a specified period. This actual price is indexed by Chainlink’s oracle. The top 10 predictions closest to the actual price are deemed winners and are rewarded according to a specific payout structure.
Payout Structure
The prize pool is distributed among the top 10 winners as follows:
- First Place: 50% of the prize pool
- Second Place: 25% of the prize pool
- Third Place: 10% of the prize pool
- Fourth Place: 5% of the prize pool
- Fifth Place: 3% of the prize pool
- Sixth Place: 2% of the prize pool
- Seventh to Tenth Place: 1.25% of the prize pool for each
In cases where multiple users select the same winning price, the prize for that ranking will be divided equally among those users.
Incentive pool
Over the first month, EMDX will allocate a portion of its treasury to boost the prize pool and encourage increased participation within our community. The key benefits of this product are realized when a critical mass of participants is reached, as explained below.
Prize Pool Management
To ensure the sustainability and continuous improvement of Crypto Ultra, a 5% commission is taken from the total prize pool for operational and management purposes. Additionally, 2.5% is allocated to a super prize pool. This super prize pool is awarded to any participant who accurately guesses the exact final price, as verified by Deribit’s oracle. The super prize pool accumulates over each period until it is won, providing a substantial incentive for precise price forecasting.
The Power of Collective Wisdom
Crypto Ultra is more than just a prediction game; it is a practical tool based on the wisdom of the crowd theory. This theory suggests that large groups of people are collectively smarter than individual experts when it comes to problem-solving, decision-making, and predicting future events. As more participants engage with Crypto Ultra, the predictive insights generated are expected to follow a Gaussian bell curve, or normal distribution. This statistical pattern indicates that the aggregated predictions will cluster around the actual future price, making the tool increasingly insightful and valuable over time.
The Gaussian bell curve is significant because it represents the distribution of collective guesses, where the mean (average) of all predictions tends to be very close to the actual outcome. This phenomenon is particularly powerful in financial markets, where individual biases and errors are averaged out, resulting in a highly accurate consensus forecast.
This aggregated data will be shared in real-time within the market data section on EMDX. Traders operating in derivative markets, such as perpetual contracts, will find this statistical instrument incredibly useful for informed decision-making. The collective predictions will serve as a powerful indicator of market sentiment and potential price movements. As participation grows, the accuracy and reliability of these predictions will further enhance, solidifying Crypto Ultra as an indispensable tool for traders.
Conclusion
Crypto Ultra represents a significant step forward in the intersection of predictive analytics and decentralized finance. By harnessing the collective intelligence of its participants, Crypto Ultra not only offers an exciting opportunity to win prizes but also provides valuable market insights. We invite all EMDX users to participate, test their predictive skills, and contribute to the creation of a powerful new tool for the trading community.
Stay tuned for more updates and get ready to join the Crypto Ultra experience.
