gitcoinbot
commented
3 years ago Issue Status: 1. Open 2. Started 3. Submitted 4. Done
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(About us: Bitcoin is "money without banks." Ideamarket is "credibility without media corporations.")
ideamarket.io | Twitter | Discord Today, we have markets for Twitter and Substack accounts.
But Ideamarket could conceivably be used to fund Gitcoin Grants.
If we had a market where each Ideamarket listing is associated with a Gitcoin grant (instead of a Twitter account), it could
1) Facilitate grant discovery 2) Create a separate "income stream" for projects that is not based on sheer generosity 3) Pay out slowly instead of all at once, allowing speculators to decide over time who's meeting their goals
The challenge is this: our markets are permanent. That means when a Grant project gets finished, abandoned, or VC funding, people will lose money as that Grant's market dumps.
Build something that solves or avoids this problem.
EXAMPLE SOLUTION:
From Balaji on Twitter: "The wallstreetbets/defi crossover could mean implementing social smart contracts, like a last-in-first-out liquidation waterfall. N people put money into a smart contract until the shorts are squeezed. Proceeds are then divvied up by pre-agreed formula. A liquidation waterfall says who gets what money when. A smart contract could put that logic on chain and set it up for one-click investment from a social media site. This means group profits are distributed in an orderly manner."
Why it doesn't quite work: The liquidation waterfall distributes proceeds from short liquidations to everyone who longed. But if there's no leveraged trades to liquidate, it's just a pump and dump with no gains or losses.
Why it might work anyway: Perhaps the liquidation waterfall could be implemented in a way that retains some risk, and from that risk, rewards early buyers disproportionately. This way, when a grant ends and people dump, the last to exit will only lose a perhaps 10-25% of their principal, instead of 75-99%. You could call this "Diet Ideamarket" — both risks and rewards are reduced, but there remains enough of each to motivate due diligence and early aping. Perhaps liquidation waterfalls will someday be as prevalent and customized as bonding curves.
Prize
$1,000 to the winner
Resources
Submission Requirements
Judging Criteria
Submissions will be judged by:
Winner Announcement Date
We will choose the best submissions by March 28.
PS — We’re hiring
Applicants who build with us during the Hackathon will receive priority consideration.