The Pareto Network is a service for incentivizing the generation and sharing of information about tradable opportunities in cryptocurrencies and related assets. It is designed to elevate information about market inefficiencies and promote more accurate price discovery. What that means is that it should steer the markets toward the correct pricing of these assets. It replicates the function of research desks at investment banks, providing a flow of information that anyone can access, and aligns economic incentives to promote that reality.
Differences from Prediction Markets
Prediction markets rely on the wisdom of the crowd, promoting a binary side bet that something will or will not happen, or that opposites will happen. It is meant to aggregate all available information to determine what team will win, who will win an election, and other forms of binary events. The purpose is to create a limited incentive for people to put money behind a decision they believe in. The limitation comes from both the kinds of information that can be applicable to a prediction market, and the information available to the crowd to begin with. Finally, markets may not form at all outside of the biggest events already in the collective conscious, exacerbating an already irreconcilable liquidity problem.The Pareto Network provides an incentive to disclose the improbable. This results in enabling as many people as possible to make profitable investment decisions in the relevant markets before non-users, based on real-time information they obtain from the Pareto Network. The users are in turn incentivized to compensate the Content Contributors with Pareto tokens, as that action improves their ranking on the Pareto leaderboard and allows those people to get the next information disclosure sooner
The amount of Pareto tokens is finite and a total of 500,000,000 Pareto Tokens (PXT) will be created. The Pareto token is an Ethereum ERC20 compatible token that operates on the Ethereum blockchain.
Currently, the average block time on the Ethereum blockchain is well under one minute. Transactions in Pareto tokens are of a nature such that this block time (and the resultant expected time for transaction confirmation) is considered to be well within desired time intervals. Examples of common transactions are a transfer of Pareto token rewards to a Content Contributor and the spending of Pareto tokens by a user with the intent to reward a valued Content Contributor and effect an improvement in the user’s ranking. To address the possibility that the minimum holding of Pareto tokens is too high for a new Content Contributor, users can lease their Pareto tokens for the benefit of the Content Contributor.
Appendix A: Token Sale Details
Token Symbol: PXT
Token Type: ERC20
Total Number of PXT created 500,000,000
Percent of PXT sold to public 40%
Price 1 ETH = 5,550 PXT
Presale Opens: October 30, 2017
Presale Closes: January 15, 2017
Bonus during Presale: 1 ETH = 5,550 PXT
(10% Bonus to first 20% of
Hard Cap: 25,000 ETH