Tipster Protocol: Monetizing Your Sports Betting Picks

Written in collaboration with Tintin, creator of SX-lab.bet

Abstract

Tipster Protocol introduces a novel protocol that leverages the transparency of the SX blockchain betting ecosystem to create the most trustworthy tipster product in the world. By combining the social token concept with the on-chain verifiable betting histories of the SX betting exchange, the Tipster Protocol offers an avenue for bettors to tokenize their reputation and for followers to gain privileged access to their betting insights. This paper outlines the protocol mechanisms, the creation of tipster tokens, and the interactions between bettors, followers, and the SX community.

Introduction

The intersection of betting and blockchain technology has opened new possibilities for transparency and community engagement in sports betting. Tipster Protocol aims to capitalize on this by allowing successful bettors to mint social tokens tied to their on-chain betting history. Holders of these tokens gain exclusive access to the bettor’s insights, instant on-chain betting notifications, and a tailored group chat environment, encouraging a more informed and engaged betting community.

Challenges in Contemporary Betting

Tipster Sites & Sports Betting Tipsters

The proliferation of sports betting has given rise to numerous tipster platforms, where bettors seek advice and insights to inform their wagering decisions from experts. Despite their popularity, these sites are plagued with systemic issues that undermine their value and trustworthiness. The Tipster Protocol aims to address the following three main problems inherent in today’s sports betting tipster sites:

1. Lack of Transparency and Verifiability

Many tipster sites suffer from a transparency deficit. Picks and performance records can be manipulated, outdated, or presented without adequate context, leading to a distorted image of a tipster’s success rate. The absence of a reliable verification mechanism allows for the embellishment of results and fosters an environment ripe for fraudulent activity. Bettors are often misled by inflated success metrics, while genuine tipsters struggle to distinguish themselves from fraudulent actors. This leads to diminished overall trust in the tipster community.

2. Inconsistent Quality and Expertise

The barrier to entry for becoming a tipster on many platforms is low, leading to a proliferation of self-proclaimed experts with varied levels of actual knowledge and experience. This inconsistency in quality makes it challenging for bettors to identify truly skilled tipsters, causing them to navigate through a quagmire of subpar betting advice. Bettors waste time and resources following poor-quality tips, while skilled tipsters face competition from numerous unqualified individuals, hurting the overall value provided by tipster sites.

3. Unsustainable Economic Models

Traditional tipster sites often rely on subscription models, where users pay a fee to access a tipster’s insights, regardless of the outcomes of those tips. This model does not align the tipster’s economic incentives with the success of their followers, as tipsters are compensated irrespective of their performance. The system can become a breeding ground for churn-and-burn strategies, where tipsters benefit from a constant influx of new subscribers after older ones leave due to dissatisfaction.

Tipster Protocol Solves These

The Tipster Protocol is designed to tackle these systemic issues head-on by leveraging the immutable and transparent nature of blockchain technology.

1. On-chain Transparency and Verifiability

By leveraging the immutable ledger of the SX blockchain, the protocol ensures that all tipster betting histories are recorded and maintained in a tamper-proof environment. This on-chain data cannot be altered or misrepresented, providing an authentic track record of a tipster’s betting history.

2. Tokenized Reputation

The protocol introduces a tokenized reputation system where the value of a tipster’s token is correlated with their betting performance. High-performing tipsters’ tokens are likely to be more valuable, offering a clear signal of quality to potential followers.

3. Aligned Incentives

In the Tipster ecosystem, the economic incentives are directly tied to performance. Tipsters earn more when their tokens appreciate in value, which only happens if they consistently provide winning tips. This creates a natural selection where only the best tipsters thrive.

Tipster Protocol

The Tipster Protocol consists of several key components, each serving a specific function within the ecosystem:

Balance Checker Smart Contract

A smart contract that can query the blockchain to confirm if a specific wallet holds a minimum quantity of a certain token. This is essential for validating access to premium content and ensuring the exclusivity of tipster groups.

Inputs:

• Wallet address

• Token address

• Minimum token amount required
  

Functionality:

• Checks the token balance of a given wallet

• Verifies the eligibility for access to tipster notifications and groups
  

Token Factory Smart Contract

A contract that facilitates the creation of unique social tokens for bettors on the SX exchange.

Inputs:

• Name

• Ticker symbol

• Initial supply

• Creator’s wallet address
  

Functionality:

• Mints new social tokens

• Distributes tokens to the creator, SX community fund, and protocol maintainers

User Interface

Tipster Leaderboard

The Tipster Protocol should include a robust and dynamic Tipster Leaderboard Interface, serving as a pivotal component in fostering a competitive yet transparent betting environment. This interface is designed to rank bettors on the SX Network based on their profit margins, offering breakdowns by various sports and time periods. It presents a clear and insightful perspective on the performance of each bettor, promoting an atmosphere of integrity and credibility.

SX-lab has already built such an interface

Token Creation

A user-friendly interface within an analytics tracking site (such as sx-lab.bet) that enables tipsters to generate their tokens using the Token Factory Smart Contract.

• Tipsters submit their desired token parameters

• Contract mints the tokens and records the transaction
  

Follower Access

An interface for users who wish to follow a tipster and gain access to their content and betting insights.

• Validates user token holdings via the Balance Checker Contract

• Grants access to Telegram notifications and community groups

Telegram Bot

An automated service integrated into tipster-managed Telegram groups to manage memberships.

• Sends invitations to new token holders

• Periodically checks the token balance of group members

• Removes members who no longer hold the required token amount

Tipster Workflow

1. Token Minting:

• The tipster creates a new token through the UI.

• A token pair is established on a DEX for liquidity purposes.
  

2. Community Building:

• The tipster sets up a Telegram group for sharing betting insights.

• The Telegram bot is added to the group and configured with admin permissions to manage memberships.
  

3. Ongoing Interaction:

• The tipster shares bets, which triggers notifications to token holders.

• Followers with access tokens receive real-time updates and can interact within the exclusive community.
  

Economic Model

The tokenization of betting reputation not only incentivizes knowledgeable bettors to share their insights but also creates a new economic model within the sports betting ecosystem.

• Initial Supply: Determined by the tipster, balancing scarcity with accessibility.

• Distribution: A portion of the minted tokens is reserved for the creator, the SX community fund, and protocol maintainers.

• Value Proposition: The token’s value correlates with the tipster’s betting performance and engagement within the community.
  

Access to the group could also require regular burning of Tipster coins, in order to create a continuous revenue model for the Tipster. As coins are burnt, the Tipster can re-mint new Tipster coins and/or additionally introduce some inflation in the coin supply.

The key element of the Tipster coins though is that they are provably scarce, introducing verifiable exclusivity into the bettors’ insights. This prevents over-saturation or the “crowding out” effect that often happens when an excellent bettors’ insights are shared widely.

Additionally, because followers also own an economic stake in the tipsters’ success, they are similarly incentivized to protect the value of their insights.

Conclusion

Tipster Protocol represents a pioneering integration of sports betting and social tokens on the blockchain. By enabling tipsters to tokenize their reputation and followers to directly engage with the tipsters they trust, the protocol can make the sports betting experience more fun.

As the protocol grows, the opportunities grow both for bettors to monetize their reputation and for followers to tap into provably good tipsters. If you’re interested in exploring this idea more, feel free to join the official SX Network discord. We have created a private sub-group within the discord to chat (called #tipster-coins) specifically about this idea more; let us know if you’re interested and we can add you.