Oracle and disputes
How a market decides what happened, and how to argue with it.
The report
At the close date the oracle reads the source named when the market opened and writes an outcome to the market account. Reporters bond what they report.
The dispute window
For 24 hours anyone can stake against the reported outcome. A successful challenge takes the reporter's bond; a failed one forfeits the challenger's.
Whichever side turns out to be wrong pays the side that was right, which makes accuracy the cheapest strategy available to either of them.
Payout
When the window closes the winning side redeems at $1 a share and the losing side is worth nothing.