Originally Posted by SaveTheWhales
Insofar as there's no legal claim, true for all tokens. But look again at the whitepaper page 12
Its hazy and I had to enquire further with the team. What happens is users typically load up their account with fiat which is converted to stablecoin/WIZ behind the scenes and their fees are eventually paid in WIZ. Again, the user doesn't notice the conversion. Hence the claim that the vast majority will pay in WIZ i.e. non crypto geeks are (edit: not) the target market.
Any bitcoin / ether used for fees is auctioned to anyone that wants to burn GNO for it, reducing GNO supply long term. Idk why they wouldn't just convert the bitcoin or ether to WIZ but whatever.
Far from tokenholders getting no income, *all* the income in fees the platform receives is passed on to GNO holders.
You have to have the mindset that we are in a post-adoption scenario where web3 browsers / extensions / (d)apps / uPort / makerdao are understood OR the third party front end implementations on Gnosis are effectively masking the need for users to understand same.
When I wrote this, i specifically meant that i had issues with the way bets are settled on Gnosis through their "oracle" method. I think their system is probably more reliable than Augur's by virtue of the fact that there will be centralized entities, but centralized oracles & ultimate oracle where anyone with Eth can go in and change the outcome really opens them to attacks on outcomes. This is why I wrote that it was a scam, anyone in the "ultimate oracle" phase can go in and basically rekt the entire market just because they own a **** ton of ether.
In REP/Augur this would be so hard to do because REP holders are anonymous and distributed and completely randomized as to what markets they are reporting on. They cannot be bought out in the 2nd market to "change this outcome".
I also want to say that I am EXTREMELY skeptical that Augur/Gnosis have constructed sound and correct economic incentives to ensure that markets consistently settle "correctly", even if the majority of markets settle themselves before the reporting period opens.
The fact that anyone bought into this token sale where an outcome exists for devs to own 95% of tokens is a complete joke. I dont feel sorry for anyone who bought in and I hope it completely collapses on itself. The community needs another DAO/wakeup call on these ICOs, and I hope Gnosis is this tale.