Aug 29, 2017 · 1 min read
The Schelling principle works fine as long as each each agent can only lose or win the deposit or oracle incentives according to her report.
But if the oracle’s result influences a much larger stake — this economic principle fails, as my incentive is no longer to report the median of other reporters, but to report the value required for the dependent prize.
Say that I bet 1000BTC against a friend in a smart contract that the BTC/USD rate will cross 5000$ within one day from now.
I would gladly lose 900BTC invested in ORC in order to influence the result and win 1000BTC from the dependent contract.
