Kleros: Decentralizing Justice. First IICO project held on May 15.

in cryptocurrency •  last year 

kleros logo.jpg

At the heart of the Kleros project is the pursuit of Justice. Its goal is to provide fast, fair and affordable arbitration through the use of Ethereum blockchain technologies and collective intelligent decision making.

They are holding their IICO on May 15, 2018.


Arbitration is a commonly used procedure for settling commercial disputes, where involved parties will agree on who and where a dispute will be resolved should a problem arise during the exchange of goods or services.

At its heart is the escrow, and the escrow agent.

The escrow holds the payment of payer to the payee until the good or service provided is deemed satisfactory. Should problems arise, either party can instantiate a dispute, the escrow agent then is responsible for determining who should receive the fund.

escrow.JPG

This is not unlike the escrow system that is in place in Steem, and is currently used by BitAd to handle the BitAd futures contracts.

The escrow system on Steem is quite simple.

steem escrow.PNG

You would enter your username, the recipient's username, and an arbitration agent (which would dictate the fee).

steemescrow1.JPG

In the old version, you would be required to input your private key but with the latest update, you would use SteemConnect.

steemescrow2.JPG

You then would fill-out the amount of the payment along with the time-limit for recipient and agent to approval the escrow transaction and the warranty period which would determine how long this escrow transaction should be held until the transaction is returned to the payer.

steemescrow3.JPG

And most importantly of all, the terms of the transaction.

steemescrow5.JPG

It is based on these terms that the escrow agent will make his decision should disputes arise.

The problem with escrow services is that the payer chooses the escrow agent, which means there is an incentive for the agent to rule in favor of the payer if the agent expects repeat business from the payer.

Another problem is that should the account holder of the escrow agent choose to sell the account, it would comprise the integrity of the procedure.

What is needed is a neutral party playing the role of the escrow agent.

In Kleros, you are placing your trust in a DAO, or a Decentralized Autonomous Organization. Instead of a single person, you are placing your trust in multiple persons serving as the juror in their respective domain expertise.

Aligning economic incentive with telling the truth.

The Kleros project is based on a concept developed by Thomas Schelling and expounded by Vitalik Butterin.

"focal point[s] for each person’s expectation of what the other expects him to expect to be expected to do"

  • Thomas Schelling

To demonstrate this, take for example this simple coordination game taken from Wikipedia:

Consider a simple example: two people unable to communicate with each other are each shown a panel of four squares and asked to select one; if and only if they both select the same one, they will each receive a prize. Three of the squares are blue and one is red. Assuming they each know nothing about the other player, but that they each do want to win the prize, then they will, reasonably, both choose the red square.

Focal_point_squares.jpg

Ethereum founder Vitalik Buterin has proposed the
creation of the Schelling Coin, a token that aligns telling the truth with economic incentives. If
we wanted to know if it rained in Paris this morning, we could ask every owner of a Schelling Coin:
“Has it rained in Paris this morning? Yes or No”. Each coin holder votes by secret ballot and after
they have all voted, results are revealed. Parties who voted as the majority are rewarded. Parties who voted differently from the majority lose are punished.

  • paraphrased from the Kleros whitepaper

When a person wants to dispute a case through Kleros, a arbitration fee must be deposited to start the process. This fee can be paid either by just one party or both, as long as there is enough to pay for the jurors, the process can begin.

arbitration fee.png

In order to be selected to become a juror on Kleros, they must stake their Kleros tokens, called Pinakions, and cast their vote secretly.

Once the majority agreement is reached, the jurors who voted with the majority will be rewarded and those who voted in opposition with the majority will be penalized.

In the case where all jurors agree, then they will still be compensated for their time by the arbitration fees. Even without unanimity jurors get arbitration fees.


In Kleros, no one knows exactly how everyone is going to vote. It relies on the fact that most people will vote for the choice that others are likely going to vote for. And it rewards those who have voted for what the majority has voted for and punishes those who have not.

The benefit of this system over a single agent dispute system is that both parties to the agreement can trust the Kleros collective to be fair-minded and neutral. And do not need to rely on a single person to process the many thousands of disputes that might occur on a day-to-day basis.

They plan to support areas of commercial arbitration with a hierarchy of courts.
kleros courts.JPG

If the participants are not satisfied with the ruling of a lower court they can always appeal and get their case heard at a higher one.

kleros court higer.JPG

one interesting use case is:

• Social networks:
Preventing spam, scams and other abuses is a challenge for decentralized social networks.
Parties can report violations of the network policies and put a security deposit.
If the violation is contested, a dispute resolution process ensues.
If it is ruled that no violation happened, the reporter loses his security deposit to the accused party.
If the violation is not contested or confirmed by Kleros various effects can be implemented:
the content can be removed, the content poster can lose a sign-up deposit and the
reach of his other posts can be lowered.

This is a problem that we here in the Steem community face daily. In a decentralized system, how do come into consensus about what behavior are allowed and which are not? And how do we enforce this?

A system like Kleros could be a solution to our problems.


Token Sale

Kelros is a project that aims to bring fast, transparent and inexpensive justice for all and in that ethos they have adopted industry standard and recommended best practices.

The goal of the public sale is to fairly distribute our token, the pinakion (PNK), to the community.
One of the guiding principles of the IICO model is that it eliminates favoritism and deep discounting. We have declined private sale offers, electing to proceed directly to a public sale in which everyone has an equal opportunity to acquire tokens at the same rate.

Using a new innovative token sale model called the IICO, proposed by Vitalik Buttrin, creator of Ethereum, Kleros ensures a fair distribution of tokens for all those who wishes to participate gets a chance to do so.

IICO site.


In demonstrating a working MVP, a clear roadmap and a fair token sale, our hope is to bring back some sort of sanity to a somewhat crazy ICO market and instill confidence in those that believe in what we’re doing.

Kleros already have a prototype working and is currently being tested on the Ethereum testnet.

Main Court contract
Arbitration contracts.


Ultimately, our goal is to bring justice and arbitration to millions of people who have otherwise been marginalized and priced out of doing so by the current systems.

-Federico Ast, Founder of Kleros.io

One pager
Whitepaper

More information on Medium.
Reach them on Telegram.

Image credit: https://karineo.jusbrasil.com.br/artigos/186266727/a-utilizacao-do-escrow-account

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

You got a 23.66% Upvote and Resteem from @ebargains, as well as upvotes from our curation trail followers!

If you are looking to earn a passive no hassle return on your Steem Power, delegate your SP to @ebargains by clicking on one of the ready to delegate links:
50SP | 100SP | 250SP | 500SP | 1000SP | 5000SP | Custom Amount

You will earn 80% of the voting service's earnings based on your delegated SP's prorated share of the service's SP pool daily! That is up to 38.5% APR! You can also undelegate at anytime.

We are also a very profitable curation trail leader on https://steemauto.com/. Follow @ebargains today and earn more on curation rewards!

great innovation from the Team Kleros.

  ·  last year Reveal Comment

sir iam working ico,,,its very helpfull post

Great post!
Thanks for tasting the eden!

Nice post ! You got 6.17% upvote from @flymehigh. Earn free sbd/steem daily by delegating(renting) your SP. We share high return, click here to delegate your sp to flymehigh if you don't know, how to earn passive income by delegating your SP click here for more info Join our discord You can promote your posts. Thanks.

You got a 50.00% upvote from @peace-bot courtesy of @bluabaleno!

Help spread the peace. Want to promote your posts too? Send a minimum of .02 SBD or STEEM to @peace-bot with link in the memo for an upvote on your post. You can also delegate to the bot for daily passive earnings. If you would like to delegate to the Peace Bot you can do so by clicking on the following links:
50SP 100SP 250SP 500SP 1000SP 5000SP

Learn more!

  ·  last year Reveal Comment

Release the Kraken! You got a 1.36% upvote from @seakraken courtesy of @clesaege!

Congratulations @bluabaleno! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of upvotes

Click on any badge to view your own Board of Honor on SteemitBoard.

To support your work, I also upvoted your post!
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

Upvote this notification to help all Steemit users. Learn why here!

This post has received a 0.82 % upvote from @booster thanks to: @clesaege.

Congratulations, your post received 49.63% up vote form @spydo courtesy of @clesaege! I hope, my gratitude will help you getting more visibility.
You can also earn by making delegation. Click here to delegate to @spydo and earn 95% daily reward payout! Follow this link to know more about delegation benefits.

You got a 18.66% upvote from @oceanwhale With 35+ Bonus Upvotes courtesy of @clesaege! Delegate us Steem Power & get 100%daily rewards Payout! 20 SP, 50, 75, 100, 150, 200, 300, 500,1000 or Fill in any amount of SP Earn 1 SBD Per 1000 SP | Discord server

This post has received a 0.54% upvote from thanks to: @clesaege.
For more information, click here!!!!

Try the new Minnowhelper Bots for more information here

Do you know, you can also earn passive income after every bidding round simply by delegating your Steem Power to @minnowhelper?
you can delegate by clicking following links: 10 SP, 100 SP, 500 SP, 1000 SP or Another amount

Help support @minnowhelper and the bot tracker by voting for @yabapmatt for Steem witness! To vote, click the button below or go to https://steemit.com/~witnesses and find @yabapmatt in the list and click the upvote icon. Thank you.

Voting for @yabapmatt

STEEMER.NET bidding BOT upvoted your post.

Send minimum 0.500 SBD or STEEM with post URL in MEMO to @steemerap bidding BOT for Windows or delegate SP to BOT, and earn huge profits in return !

More info here: https://steemit.com/@steemerap

You got a 6.20% Prime Upvote from @alphaprime courtesy of @clesaege!

All Upvoted posts are considered for additional Upvotes and Resteem based on quality content criteria chosen by our moderators in an effort to give something back to the community.

If you have any queries, want to send a feedback or interested in delegating SteemPower to us please join our discord channel.

Please delegate us Steem Power & get daily rewards share!
20 SP, 50, 75, 100, 150, 200, 300, 500, 1000 or Fill in any amount of SP.

You got a 1.99% upvote from @emperorofnaps courtesy of @clesaege!

Want to promote your posts too? Send 0.05+ SBD or STEEM to @emperorofnaps to receive a share of a full upvote every 2.4 hours...Then go relax and take a nap!

This post has received a 5.41% upvote from @msp-bidbot thanks to: @clesaege. Delegate SP to this public bot and get paid daily: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP Don't delegate so much that you have less than 50SP left on your account.

This post has received a 10.38% UpGoat from @shares. Send at least 0.1 SBD to @shares with a post link in the memo field.

Interested to earn daily? Delegate Steem Power to receive 95% payout rewards. Use this link https://on.king.net/shares to delegate SP to @Shares. Join us at https://steemchat.com/ discord chat.

Support my owner. Please vote @Yehey as Witness - simply click and vote.

You got a 7.69% upvote from @redlambo courtesy of @clesaege! Make sure to use tag #redlambo to be considered for the curation post!

This post has received a 3.39 % upvote from @boomerang.

You got a 11.11% upvote from @luckyvotes courtesy of @clesaege!

This post has received a 4.48% upvote from @aksdwi thanks to: @clesaege.

Loading...

You got a 13.89% upvote from @steembloggers courtesy of @clesaege!

You got a 12.12% upvote from @brupvoter courtesy of @clesaege!

You have been defended with a 17.63% upvote!
I was summoned by @clesaege.

Trading will never be the same with our unique technology. Follow us @aitrading.com and learn more about AITrading-ecosystem.
orig.gif

Did you know that there is a livestreaming service built on top of the Steem network called DLive? DLive enables anyone to stream what they enjoy and earn rewards in the form of Steem, just like on Steemit.com. Come check out some streams and see how easy it is to join in the conversation!

You received a 78.57% upvote from @dlivepromoter


Want to promote your posts? Send at least 0.010 STEEM or SBD to @dlivepromoter with the post link as the memo and receive an upvote on that post!

Delegate Steem Power to @dlivepromoter for a daily payout!

1 SP, 5 SP, 10 SP, 100 SP, 500 SP, custom amount
We pay 85% of bids back to the delegators each day. The remaining 15% is contributed back towards @dlivecommunity to help create a larger community.

Disclaimer:

@dlivepromoter is a part of the community project @dlivecommunity. We aim to help streamers navigate their way through @dlive and the overall Steem ecosystem. We are not affiliated with @dlive.

You got a 100.00% upvote from @allaz courtesy of @clesaege!

Thanks for using Bid Voting Bot @allaz service and Steem Upvote Bot Tracker
I want to introduce you to my new friend @monsterbit in order to give additional thanks!
Do you know who is @monsterbit is? My friend, you can miss a lot. I highly recommend checking him with introduceyourself. He is going to hold interesting contests with cash prizes and promises to tell a lot of interesting stories!

You got a 40.00% from @th3voter thanks to: @clesaege!


kitten fighting :)
Image Source cloudinary.com


This post has upvoted from @th3voter !For more information, click here!

You can earn daily profit by delegating SP to our bot, 98% of earnings paid out to delegators. To do so, click below:
30SP, 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP, 10000SP,
Custom Amount
Make sure you have at least 15 SP left on your account.

You got a 26.32% upvote from @brandonfrye courtesy of @clesaege!

Want to promote your posts too? Send a minimum of .10 SBD or Steem to @brandonfrye with link in the memo for an upvote on your post. You can also delegate to our service for daily passive earnings which helps to support the @minnowfund initiative. Learn more here

You got a 29.78% upvote from @dailyupvotes courtesy of @clesaege!

Please upvote this comment to support the service.

You got a 29.38% upvote from @upmewhale courtesy of @clesaege!

Earn 100% earning payout by delegating SP to @upmewhale. Visit http://www.upmewhale.com for details!

You got a 13.58% upvote from @slimwhale courtesy of @clesaege!

Did you know you can make a passive income by simply delegating steem power?
@slimwhale offers the best return on your investment, sharing 100% of the bidding pool rewards, daily, proportional to your investment.
Let's grow together, start earning now by clicking the following links: 10SP, | 50SP | 500SP, | any amount |
For more information, see here or join me on Discord

You got a 32.52% upvote from @bluebot courtesy of @clesaege!

You got a 10.46% upvote from @mitsuko courtesy of @clesaege! .

Join our team and delegate your SP to earn passive income.
Get part of 90% @mitsuko profit based on your delegated SP
Delegate 10 SP
Delegate 100 SP
Delegate 200 SP
Delegate 300 SP
Delegate 500 SP
Delegate 1000 SP

or custom delegation SP

Congratulations! Your post has been featured in the "BlueBot Daily Best of BlueBot Voters!". Thank you for using @BlueBot!

Loading...