klerós

Kleros is a decentralized dispute resolution protocol that uses a prediction market mechanism and a cryptoeconomic incentive system to resolve disputes. It operates on the Ethereum blockchain and is designed to be a trustless and transparent system for settling disagreements. The core idea is to leverage the wisdom of the crowd to make fair and unbiased decisions.

Users who wish to resolve a dispute can submit their case to the Kleros platform. This involves staking a certain amount of cryptocurrency to register the dispute. Then, token holders, known as jurors, can choose to stake their tokens in order to be selected to vote on the case. Jurors are randomly selected from the pool of those who have staked.

When selected, jurors are presented with the evidence submitted by the parties involved in the dispute. They then vote on the outcome of the case. Their votes are weighted based on the amount of Kleros tokens they have staked. After a voting period, the outcome with the majority of votes is determined to be the official resolution.

Jurors are incentivized to vote honestly and diligently. If their votes align with the majority outcome, they receive a share of the staked tokens from the losing party. Conversely, if they vote against the majority, they risk losing their staked tokens. This system aims to ensure that jurors act in good faith and contribute to the integrity of the dispute resolution process. Kleros can be used for a wide variety of disputes, from content moderation on decentralized platforms to resolving disagreements in smart contract execution.