A market (for example ‘Over 120’ or ‘Money Line’) can have one of three outcomes: TIE/VOID, WIN, or LOSS.
The initial version of decentralized market reporting works by network validators subscribing to smart contract events emitted by a select number of reporting outcome proposers. These outcome proposers - also validators on SX Network - process market outcomes published to our proprietary SX Network reporting message queue.
All other validators will listen for any proposed outcomes and then make use of SX Network’s proprietary reporting outcome oracle API to place a stake-weighted vote on the outcome according to the API response for that given market.
Eventually we plan to roll out a later version that allows validators to subscribe to any third-party reporting provider in addition to SX Network’s proprietary feeds.
There are 3 parts to outcome reporting:
Outcome Proposing: Proposer validators first propose an outcome for a given market based on a 3rd party oracle or our proprietary SX Network reporting data feed (used in the initial version of the Merge).
Outcome Voting: All other validators who are subscribing to outcome proposal events will then have a specified window of time called the voting phase (typically 30 seconds) to cast their own vote for any markets proposed.
Outcome Reporting: Once the voting phase is over, any validator that voted on a market outcome will attempt to report that outcome. At the reporting step, the winning outcome is determined based on the majority outcome vote of all validators who voted and the addresses of all validators who voted for the majority outcome are stored for later. Once a market settles, staking rewards will be paid out to all validators who voted for the majority outcome for that market. Additionally any users delegating their stake to that validator will also receive rewards.