Cryptoeconomics Experiments in Prediction Markets and Futarchy
Purpose of the experiments is to verify the theories of prediction markets and futarchy. Ethereum Dev Grant attributed to Gnosis.pm. See Gnosis announcement.
Experiments included
Manipulate a market with known outcome
Launch a prediction market on "what will the output of this smart contract be on Mar 30, 2016?". The contract will be simply and verifiably coded to output 5. Launch a separate smart contract where some specific set of users is rewarded if the average market price exceeds 5; the more it exceeds 5 the higher their reward. This encourages them to try to manipulate the market upwards. See how well the market manages to keep the price close to 5.