The SportX Protocol, Powered by SX
The next evolution of community run sports betting
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The SportX Token (SX) has launched! Check SportX to see if you received your airdrop. Please keep in mind, the airdrop was done in Matic SX, but the token can be converted into ERC-20. As always remember to stay safe, our official token contract is here.
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At SportX, we believe that sports betting should be a transparent and fair marketplace. However, the current sports betting marketplace is neither.
Predicated on owners exploiting their users in order to increase profits, the current sports betting model is built on a conflict of interest. Sportsbooks ban users who win consistently, charge massive fees in the form of betting spreads, and as the counterparty to all bets, are hoping for their users to lose.
Driven by a vision of user control, SportX is committed to becoming the world’s first community-run sports betting platform. By turning our users into stakeholders, SportX solves the users/owner dilemma that plagues traditional betting sites.
Two years ago SportX first launched its v0, which was the first test of our decentralized peer-to-peer betting market. It was clunky with bad liquidity, and only used by a few friends and hard core redditors who saw our posts in r/makerDAO.
By relentlessly incorporating user feedback, today we are much closer to our vision of being a liquid, tradable financial market place for sports betting.
🏁 SportX Beta Adoption
SportX’s success since its launch — which has been achieved with almost no marketing and in the absence of crucial features such as in-game betting — indicates that there is significant demand for liquid, non-custodial sports betting platforms.
Since the initial beta release, SportX has:
- Processed +$10,000,000 USD in bets from over 1,000 unique addresses across more than 100,000 total transactions.
- Created and resolved over 50,000 unique betting markets across more than 200 sports leagues.
- Become the #1 Ethereum Dapp within its category, with a growing number of integrations and partnerships.
The SX Token
Having proven a strong product-market fit, SportX is well positioned for its next chapter: community-led growth, control, and development.
The SX token (SX) will serve this purpose by aligning stakeholder and enabling decentralized governance that will guide SportX to a sustainable future. SX is an ERC-20 token that will exist simultaneously on the Ethereum and Matic networks.
The SX token can be used for governance to directly impact the direction of the protocol. Although in order to participate in governance votes, token holders must first stake (i.e. lock up) their tokens.
This protects SportX governance by preventing users from buying SX tokens solely to vote on a specific proposal and then selling immediately after the vote. With staking, SX token holders that wish to participate in governance must have definitive “skin in the game”.
Staking is the act of locking up tokens for a period of time. Tokens that are staked remain in the user’s control, but they can no longer be transferred (until they are unstaked). By staking tokens, the circulating supply of the token is temporarily reduced, which also has the beneficial effect of increasing scarcity. However, stakers lose liquidity, which exposes them to risk.
For taking on this liquidity risk, SX token holders that stake will earn two distinct fees upon launch:
To encourage governance and staking participation upon launch, 5.00% of the total SX token supply (50,000,000) will be placed into a special SX Token Staking Contract for SX token stakers to earn. These tokens will be distributed proportionally to stakers at the end of each day at a rate of 0.10% of the total remaining balance each day:
The SportX protocol currently charges bettors 4.00% on net profit of winning bets, stakers will also be entitled to eventually claim a percentage of this fee pool. This percentage is initially set to 0% of the total protocol fee pool (subject to change by governance vote), meaning all DAI and ETH exchange fees are initially collected in the Community Fund (which is controlled by SX token holders).
Over time, as the SX token staking rewards becomes progressively smaller, the protocol fees should grow substantially larger to adequately compensate stakers. It’s important to note that stakers are also able to vote to change any of the parameters of the SX Token Staking Contract and the protocol fee pool through the SportX governance system.
📉 Fee Rebates
To further incentivize real users of SportX to own SX, the token can be used to reduce your betting fees on the exchange. Stakers of SX will receive up to 80% of their fees in the form of a daily rebate sent directly to their wallet.
One of the most exciting facets of a community-owned sports betting platform is the idea of a community-managed treasury. This treasury will be in charge of accelerating the SportX ecosystem through community incentives (e.g. bet mining), marketing initiatives (e.g. betting tournaments), and other strategic partnerships.
SX holders are responsible for ensuring that governance decisions are made in compliance with applicable laws and regulations. Governance proposals should factor in legal and regulatory concerns before implementation. In order to vote on any proposal, SX tokens must be staked (covered above).
SX holders will have immediate ownership and control over the:
- SX Community Fund
- Protocol fee (initially set to 4.00% of profits on winning bets)
- Protocol parameters
- sportx.eth ENS name
- SportX AMM contract (upon launch)
⚒️ Bet Mining
An initial bet mining program will go live on February 1st 2020 1:00am EST and will run for 10 weeks.
During this program, 2,000,000 SX will be allocated to users on the last day of each week, proportional to their volume, which roughly translates to:
- 200,000 SX per week
- Awarded each week based on total protocol fees paid
All SX distributed through bet mining are automatically staked and therefore subject to the 30-day staking withdrawal period.
SX token holders will be able to vote to allocate additional SX towards further bet mining initiatives among other programs like grants and strategic partnerships.
A maximum of 1 billion SX will be created, the allocation is as follows:
- 55.00% to SportX community members (550,000,000 SX)
- 22.86% to development team with 4-year vesting (228,554,913 SX)
- 17.14% to early backers with 4-year vesting (171,445,087 SX)
- 5.00% to strategic partners and marketing initiatives (50,000,000 SX)
🌅 Early Adopters Airdrop
SportX owes its success to the hundreds of community members that have traded, offered liquidity, or otherwise utilized SportX since it’s release two years ago. These early community members deserve a stake in SportX for their contributions.
Upon inception, 2.00% of all SX (20,000,000 SX) can immediately be claimed by historical users based on volume generated from May 25th, 2019 to December 31st 2020. This 2.00% are paid out of the 55% community allocation. It is important to mention, that these will be the only tokens released at genesis, and thus will have majority control over the community treasury from day one. These tokens must be claimed before March 31st, active wallets will automatically receive the airdrop.
🏦 Community Fund
The Community Fund is an asset that the SX token holders have complete control over. Of the 550,000,000 SX tokens allocated to the community, 478,000,000 are vesting monthly via a time lock and will move into the community’s control over time.
- 50 million SX has been allocated to a multi year staking initiative.
- 2 million SX is set to be used in a bet mining program to distribute SX tokens to users.
- 20 million SX has been airdropped to past users.
- The remaining 478,000,000 will vest to the communities control over time, with the first payment of 3,983,333 SX being released to the Community Fund on February 1st, 2021.
⏳ Vesting schedule
Besides the initial airdrop and staking program, all SX will vest on an identical 4 year schedule. Tokens will be released monthly with only 10% of the supply being released in the first year.
SportX Protocol <> SX
SX enables SportX to truly become the world’s first community-controlled sports betting platform and accelerate its advantages in liquidity, security, and reliability.
To learn more and join our community please check out: