Social Proof of Truth

Users place YES/NO bets on post truthfulness by sending MySo tokens to escrow. Bets are recorded with timestamps and amounts. The protocol maintains separate totals for YES and NO positions. All funds remain in escrow until resolution, ensuring trustless execution. Maximum single bet limits can be configured to prevent whale manipulation.

SPoT uses a two-tier resolution protocol: 1) Oracle Resolution - AI-powered truth analysis with confidence scoring, 2) DAO Resolution - community governance when oracle confidence falls below threshold (default 70%). Outcomes include YES, NO, DRAW, or UNAPPLICABLE. Resolutions require detailed reasoning and evidence URLs for transparency.

The oracle provides a confidence score in basis points (0-10000). If confidence ≥ threshold (default 7000 = 70%), the oracle's YES/NO determination is final. If confidence < threshold, the prediction market enters DAO_REQUIRED status, requiring community resolution. This ensures high-confidence outcomes while providing fallback governance.

SPoT enforces temporal constraints in wall-clock milliseconds: the global default minimum resolution window is about 72 days and the default maximum resolution window is about 144 days (configurable in global SPoT configuration). Records can also set optional per-market windows. A payout delay in milliseconds can hold claims after resolution. Timing uses on-chain Clock timestamps for consistent execution.

Winners receive pro-rata payouts from the distributable escrow pool (total escrow minus 1% protocol fee). Payout amount = (bet_amount × distributable_pool) / winning_side_total. The protocol uses u128 arithmetic to prevent overflow in large markets. Fees are split between platform treasury (50%) and chain treasury (50%).

When DAO resolves DRAW or UNAPPLICABLE, all bets are refunded 100% minus any protocol fees. This occurs when content truthfulness cannot be determined or the question becomes moot. Refunds maintain market neutrality while discouraging frivolous betting.

SPoT charges a configurable fee (default 1% = 100 BPS) on total escrow before payouts. The fee splits: 50% to platform treasury, 50% to chain treasury (configurable). Fees compensate oracle operations, DAO facilitation, and protocol maintenance. Fee calculation: fee = (total_escrow × fee_bps) / 10000.

Oracle resolutions require: detailed reasoning (10-5000 characters) and at least one evidence URL. DAO resolutions require reasoning and evidence URLs when provided. This ensures transparency and auditability. Evidence URLs are limited to 10 maximum per resolution for gas efficiency.

If a market stays open past the record’s maximum resolution window (wall-clock milliseconds, when set), an account holding the oracle admin capability can call refund_unresolved to refund bettors from escrow. This reduces fund lockup while requiring explicit authorization. Status moves to REFUNDABLE after refunds are processed.

SPoT includes: configurable max_single_bet limits, overflow protection with MAX_U64 checks, temporal resolution windows, confidence thresholds for DAO escalation, and comprehensive event logging. The escrow model ensures funds cannot be accessed until proper resolution.

SPoT records are created per post and can integrate with Social Proof Tokens and Proof of Creativity. Resolution outcomes may influence token economics, while PoC disputes can reference SPoT outcomes. The protocol maintains independence while enabling cross-protocol signaling.