The goal is to provide high quality oracle data for resolving prediction smart contracts. We will use this for our ALLIN betting app but the technology can be applied to many types of smart contracts and application use cases.
Token holders will be able to earn income for verification and gain monetizable expertise recognition and reputation by providing correct and timely results for events.
When an event completes, token holders will have the opportunity to stake an amount of tokens with their provided result.
Once a minimum multiple of the value of the smart contract has been staked. The AI system will then determine the result based on the amount staked, reputation of the staker and consistency of data.
There will then be a settlement period during which participants in the smart contract can appeal the pending result.
If there is not an appeal, the smart contract is resolved with the pending result which is now finalized.
If there is an appeal, then token holders who have sufficient domain expertise and reputation can then stake their tokens with the result.
Once an appropriate amount is staked, the AI will finalize the result.
Research into the incentives, disincentives, fees, and specific rules will be done to provide an economically viable system that is not easy to subvert.
Funding the ALLIN Oracle Data AI proposal will provide a valuable resource to the community as a whole, which can be used by many projects building on Cardano. This open source project and the knowledge developed can empower many different innovative applications using Plutus smart contracts.
The biggest challenge will be acquiring enough data to build successful models.
We plan on building up our own datasets over time but it may be possible to partner with other oracle service providers to accelerate this process.