Still a little confused with the idea of this coin. How would a sentiment providing a currencies for us.
Also having it contain some kind of AI? I was just thinking on how did this really work?
Quantitative modelling alone only produces mediocre predictive capabilities, because markets are fundamentally driven by two factors:
1) the tendency of an asset to return to its "intrinsic" value
2) irrational investor sentiment, driving an asset away from its intrinsic value
We have married these two approaches together to create a unique investment algorithm that is capable of consistently beating the market, and incentivises our token holders to provide the high-quality sentiment that we need to satisfy point 2 above. By paying rewards to holders of our tokens (SHP), linked to proof-of-stake, proof-of-work and proof-of-reputation, we ensure we capture the highest quality sentiment possible, and fairly reward those that help our fund generate better returns, with bi-annual Ether payments.
I would encourage you to read section 6 of the white paper, which describes the dynamics of crowdsourcing sentiment in great detail. The ultimate premise can be broken down into two points:
1) when there is something at stake, people will work harder to improve the sentiment they provide
2) when this information is provided by "the crowd", the quality & accuracy will far exceed that of any individual
Perhaps the most novel element of our crowdsourced sentiment analysis is the fact that, unlike prediction markets, there are no odds and you can never lose the SHP you have staked. Because the "reputation score" is calculated on a rolling basis, bad sentiment only serves to reduce any future rewards that sentiment providers may earn. Of course a low reputation score can be improved by providing more good sentiment in the future.
We appreciate our concepts aren't the easiest to grasp, but I heard a wise man once said: the hardest things to understand are usually the best
