The wisdom of the crowd is a valuable asset in today's society. It is not only important in predicting elections but plays also an essential role in marketing and the financial industry. Having a trustworthy source of opinion can make forecasts more accurate and markets predictable. Until now, a fundamental problem is the lack of incentives for participants to provide accurate information. Classical solutions like small monetary rewards or the chance of winning a prize are often not very attractive and also do not prevent multiple entries.

Sharpe Capital is the first financial markets protocol that offers democratic model by establishing a consensus based community governance structure. It facilitates voting, which allow the community to change terms such as reward payments and dividends.

Sharpe Capital is a blockchain based, asset sentiment platform. Users of the Sharpe Platform earn Ether rewards in exchange for their opinions about global equity markets. Backed by the Sharpe proprietary investment fund, rewards are paid to holders of SHP tokens on a quarterly basis. The Sharpe proprietary investment fund utilises cutting edge Machine Learning technology to deliver returns that consistently beat the stock market, with low volatility and an excellent Sharpe ratio.

Sharpe Capital's trading ledger smart contract maintains a real-time public record of all investment activity on the blockchain, such that sentiment rewards can be paid to token holders in a decentralised and autonomous way. Subject to obtaining regulatory sign-off, Sharpe Capital will issue a fully-regulated crypto-security token. Sharpe Capital plans to issue Sharpe Crypto-Derivative (SCD) tokens to all holders of SHP, at a rate of 1-to-1. SCD will be a dividend-paying token, which tracks the performance of the Sharpe proprietary fund and pays an Ether profit-share to token holders on a biannual basis.

Whether you are a cryptocurrency enthusiast, a trader, a research analyst or just interested with the crowd-sourced market sentiment. Member of the crowds are not driven by the same motivation and since markets and people are not rational beings, Sharpe Capital’s model is focused on measuring affect-driven and emotional responses (cognitive processes). Over time Sharpe Capital’s algorithm will learn which types of assets our users are better at providing sentiment on, and they will be shown more of these assets. So participants will end up seeing the things they know most about based on their track record of predictions.

There are 3 (three) things that will factor into how much Ether a participant will get for providing market sentiment:

1. The amount of sentiment
2. The accuracy
3. The proof-of-stake (number of SHP tokens held)

In the event of a participant’s correct sentiment, his reputation score increases. The higher a person’s reputation score the more ETH he receives every time he is correct. With Sharpe Capital’s fair approach, someone with a low reputation will still earn a payment for providing “inaccurate” sentiment. Unlike a prediction market there are no losses for incorrect predictions, merely a reduction in the users immutable reputation score, and consequently, the size of future payments.

Sharpe Capital uses quantitative algorithms to rank and score individual reputation based on the accuracy of their equity market & blockchain assets sentiment.

Useful links:
https://sharpe.capital/
https://twitter.com/sharpecapital
https://t.me/sharpecapital