Fore Protocol
  • 🌎FORE Protocol
  • 🗒️Whitepaper
    • The FORE Mission
    • Predictions Markets
      • What Are Predictions Markets?
      • Centralization: What's The Problem?
      • Decentralization: The Solution
        • Transparency
        • Market-Determined Odds
        • Zero Counterparty Risk
        • Redistribution of Fees
        • Infinitely-Scalable Oracle
    • How FORE Works
      • What is FORE Protocol?
      • Key Technology
        • Blockchain Infrastructure
        • Peer-To-Peer Technology
        • NFT Market Structure
      • Market Structure
      • Protocol Roles
        • Creators
        • Players
        • Analysts
        • Dispute Resolution
      • Protocol Lifecycle
        • Creation Phase
        • Participation Phase
        • Verification Phase
        • Dispute Phase
        • Resolution Phase
      • Payout Logic
      • Incentive Model
      • Validation Model
        • Validation Process
        • Rewards And Power
        • Reward Tiers
      • Gamification Strategy
        • Tiered NFTs
        • Leaderboards
        • Play-To-Earn Badges
    • FORE Tokenomics
      • FORE Token
      • Token Utility
      • Deflationary Dynamics
      • Supply Dynamics
      • Contract Address
    • Business Model
      • Business Revenue Model
        • Protocol Fees
        • NFT Royalties
      • Go-To-Market
        • User Acquisition
        • Target Audiences
        • Go-To-Market Strategy
          • Phase One
          • Phase Two
          • Phase Three
          • Phase Four
          • Phase Five
      • Future Solutions
        • FORE Predict
        • FORE Oracle
        • FORE Audit
        • FORE Sight
        • FORE Resource
    • The FORE Roadmap
    • Afterword
  • 🧑‍💻How-to Guides
    • Guide to Getting Started
      • Add Arbitrum to Metamask
      • Purchase ETH on Arbitrum for gas fees
      • Purchase FORE to use on FORE Predict
    • How to Use FORE Predict
    • How to Connect your Wallet
    • How to Create a Market
    • How to Take a Position in a Market
    • How to Validate a Market
    • How to Vote with your Analyst NFT
    • How to Mint / Buy / Sell NFTs
    • How to Dispute A Market
    • How to Claim your FORE Rewards
    • How to View your Activity on FORE
  • 🤓FORE Predict Pro
    • Ultimate Analyst
      • How to become a validator
      • How to maximize your earnings
      • How to become the ultimate validator
    • Ultimate Player
      • How to become a player
      • How to maximize your earnings as a player
    • Ultimate Creator
      • How to become a market creator
      • How to market your markets
      • How to maximize your earnings as creator
  • 🔐Access
    • Regional Restriction
    • Terms and Conditions
  • 📖Documentation
    • About
    • Glossary
    • Protocol Roles
      • Creators
        • Creator NFT (mNFT)
      • Players
      • Analysts
        • Analyst NFT (vNFT)
      • Dispute Resolution
      • High Guard
      • FORE Markets
        • Market Types
        • Payout Logic
        • Protocol Rewards
    • Market Phases
      • Creation Phase
      • Participation Phase
      • Validation Phase
      • Dispute Phase
      • Resolution Phase
    • Protocol Phase
      • Player Rewards
      • Infrastructure Rewards
      • NFT Tiers
    • NFT Marketplace
    • Config
      • Protocol Config
      • Market Config
    • Developers
      • Addresses and Config
      • Smart Contracts
        • ForeMarkets (Factory)
        • ForeMarket
        • Protocol Config
        • MarketConfig
        • ForeAnalysts
        • ForeToken
      • IPFS
        • Verifier NFT Metadata Format
        • Market NFT Metadata Format
        • Market Object Format
        • Base58 <->Bytes32
Powered by GitBook
On this page
  1. Whitepaper
  2. How FORE Works

Incentive Model

PreviousPayout LogicNextValidation Model

Last updated 1 year ago

Today we live in the era of transition towards the Creator Economy. We no longer want to passively observe how the world changes from afar without being a part of it. Instead, we crave to participate, co-create, and leave our mark on something meaningful and innovative: immersion and participation are becoming the new normal. But we also want to benefit from what we self-dedicate to: alongside the possibility of participating, we seek to be the owners of our creation. The more we own, the more effort we are willing to contribute. The concept of incentives (potential gains offered for particular desired behavior patterns) is poised to address all these needs to drive passionate performance in exchange for fair rewards.

Incentives work closely together with motivation, whether intrinsic or extrinsic. Intrinsically motivated behaviors are performed because of the sense of personal satisfaction that they bring: the reward is the pleasure of doing the activity itself. Extrinsically motivated behaviors are performed to receive something from others, or avoid specific adverse outcomes. The extrinsic motivator is always an external factor: a promotion, money, status, gratitude, etc. An ideal incentive design is that one that incorporates both intrinsic and extrinsic motivators altogether.

User acquisition is just the beginning of the story – once users join, it's essential to retain and encourage users to continuously utilize the protocol for as long as possible to achieve a high user retention rate. Only by retaining users does any business have the chance of survival, and token incentives play a vital role in this industry. When they are appropriately designed in a user-oriented manner and offer a wide range of utilization cases that align with users' needs, why leave the network?

Rockloff et al. (2019) in the Journal of Behavioral Addictions determined that the right incentives drive greater participation in traditional prediction markets, but many founders focus on the outcome of behavior (price, volume, etc) - instead of focusing on creating an ecosystem of incentives and incentivizing the desired behavior itself. Unlike traditional prediction markets (or blockchain projects in general) we don’t intend to drive participation solely to our own end, while reaping all of the benefits like a centralized entity.

Web3, the blockchain ecosystem that shifts power (and value) from centralized entities to the individual, is built on incentives. As a web3 protocol, we want to use incentives to create a productive and profitable economy for users who are rewarded for productive behavior on the protocol through the redistribution of fees, and benefit from protocol growth.

Instead of minting new tokens for rewards, a 5% maintenance fee is imposed on all market participation. This is used to fund a variety of incentives to reward participants and achieve and maintain Protocol Homeostasis: a flywheel of activity that benefits all participants (including the protocol itself). Using FORE as the protocol’s sole currency allows us to reward all participants in our ecosystem for productive activity in a sustainable way: unlike many other projects, this is done without minting tokens for new rewards. FORE’s utility token is hyper-deflationary and new tokens are never minted.

🗒️