The information below has been provided as of March 2020 and is subject to be updated at any point in time by ZenSports. All ZenSports customers are responsible for understanding this content at all times.
ZenSports' goal is full decentralization of sports betting, whereby ZenSports never gets in the middle of making/taking bets or resolving disputes. However, the reality is is that marketplace businesses such as ZenSports often require a centralized party to "seed" the marketplace in order to get the fly wheel going so that customers don't come into the marketplace and find a graveyard with no sports bets, or no ecosystem for resolving bets. This is where the term "Market Maker" comes from.
**Note that Market Makers are different than Bookmakers. Market Makers provide liquidity and supply, but don't make book on bets or create rules or odds. Bookmakers make book, determine the rules, and set the odds.
Until some point in time in the future where the ZenSports marketplace is able to fully run on its own balance of Makers and Takers, there are 2 components that ZenSports must be involved with in order to scale our marketplace to the masses:
- Market Making of its own bets -- When there is a lack of liquidity/bets created by Maker customers within ZenSports for certain leagues, sports, games, and seasons, ZenSports will “fill in the gap” for these bets by adding our own bets under the ZenSports brand. These bets use data-generated odds set by the average of all the top bookmakers within the sports betting ecosystem, and again, never get derived from ZenSports. The purpose of Market Making is to provide liquidity and to keep the order book of bets flowing smoothly. When ZenSports market makes its own bets, it must still play within the rules of the ZenSports peer-to-peer marketplace and can never deviate from those rules that everyone else must follow.
- Resolving disputes that come up -- At some point in the future, ZenSports will be building its own Voting Marketplace for resolving disputes, whereby those that own enough SPORTS utility tokens and that meet other criteria will be able to resolve disputes that arise within the ZenSports marketplace. The ingenious escrow and penalty/reward system that ZenSports has set up means disputes almost never happen. In the over 10,000 bets accepted by Takers since ZenSports launched, there have been less than 0.1% of bets that have been disputed, and most of those were due to clerical errors where the Maker just submitted incorrect results accidentally. Because of the extremely low number of disputes, ZenSports' internal team currently is responsible for resolving all disputes. If at any point in the future there's an uptick in disputes, we'll get the Voting Marketplace implemented immediately.