PRAXIS

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Sovereign Prediction Markets on the Canopy Network

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What is Praxis?

Praxis ($PRX) is a sovereign prediction market protocol built as a Canopy Nested Chain plugin. It lets anyone create YES/NO prediction markets, stake on outcomes, and claim proportional winnings — entirely on-chain, with no platform extraction and no central authority.

Praxis runs as an application-specific blockchain with its own state, its own token, and its own transaction types. Resolution is handled by a decentralized resolver network incentivized through the Praxis Resolver Incentive System (PRIS).

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Architecture

Praxis is a Go plugin that runs alongside a Canopy node and communicates over a Unix socket using Protocol Buffers.

┌─────────────────────────────────────────┐
│           CANOPY NODE PROCESS           │
│  ┌──────────┐  ┌────────────────────┐   │
│  │ NestBFT  │  │   FSM / Controller │   │
│  │ Consensus│  │  (block lifecycle) │   │
│  └──────────┘  └────────┬───────────┘   │
└───────────────────────── ┼──────────────┘
                           │ Unix socket
          ┌────────────────▼─────────────┐
          │         PRAXIS PLUGIN        │
          │                              │
          │  CheckTx()   ← validate      │
          │  DeliverTx() ← execute       │
          │  EndBlock()  ← epoch/PRIS    │
          │                              │
          │  12 transaction types        │
          │  PRIS resolver incentives    │
          │  On-chain dispute resolution │
          └──────────────────────────────┘
                           ▲
                           │ HTTP RPC :50002 / :50003
          ┌────────────────┴─────────────┐
          │       PRAXIS FRONTEND        │
          │  Single-file HTML/JS/CSS     │
          │  BLS12-381 signing           │
          │  Hand-encoded protobuf       │
          └──────────────────────────────┘

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Transaction Types

Transaction	Description
create_market	Open a new YES/NO prediction market. Creator bonds 5,000 PRX. Max 5 open markets per creator.
submit_prediction	Stake tokens on YES or NO. One prediction per forecaster per market.
register_resolver	Register as a resolver by bonding PRX stake.
propose_outcome	Resolver proposes a winning outcome for a market at resolution height.
commit_vote	Panel resolver submits a blinded vote hash during dispute commit phase.
reveal_vote	Panel resolver reveals their vote during the reveal phase.
tally_votes	Finalizes a disputed market after the reveal phase.
file_dispute	Challenge a proposed outcome and trigger panel voting.
finalize_market	Settles a market after the resolution window without dispute.
claim_winnings	Winners claim their proportional payout from the resolved market pool.
claim_slash	Claim slashed stake from a resolver penalized for bad resolution.
reclaim_stake	Recover staked funds from markets that were never resolved.

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PRIS — Praxis Resolver Incentive System

PRIS is the on-chain incentive layer that governs resolver behavior across epochs.

• Resolvers bond PRX stake to participate
• Each resolver has a Resolver Reputation Score (RRS) — starting at 10, floor 0
• Good resolutions earn epoch rewards from the treasury
• Bad resolutions trigger slashing and RRS penalties
• RRS gates panel eligibility: higher score = higher panel weight
• Partial unstake incurs a −10 RRS penalty; full exit resets score to 10
• 7-day unbonding period on resolver exits

Epoch rewards are distributed proportionally based on resolver stake weight at each epoch boundary via EndBlock.

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State Model

Prefix	Type	Description
0x10	Market	One record per prediction market
0x11	MarketCounter	Singleton — next market ID
0x12	Prediction	One record per (forecaster, market) pair
0x1D	ResolverInfo	Resolver registration and stake
0x1E	ResolverCounter	Total registered resolvers
0x1F	EpochSnapshot	Snapshot of resolver stakes at epoch start
0x20	ResolverReward	Claimable reward per resolver per epoch
0x21	RRSScore	Resolver reputation score
0x22	UnbondingEntry	Pending unbond with 7-day release height
0x23	DisputeRecord	Active dispute state for a market
0x24	PanelVote	Individual panel resolver vote
0x25	SlashRecord	Slashed resolver stake available to claim
0x26	TreasuryBalance	Running treasury balance
0x27	EpochRewardPool	Total reward pool for current epoch
0x28	ResolverUnbondFlag	Tracks partial vs full unbond
0x29	CreatorBondRecord	Creator bond locked on market creation
0x2C	OpenMarketCount	Per-creator open market count (spam cap)

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Payout Model

Winners split the entire losing pool proportionally to their contribution to the winning pool. A 2% treasury cut is taken before distribution.

Example:
  YES pool: 600,000 μPRX  (forecaster contributed 200,000)
  NO pool:  400,000 μPRX  (losing side)
  Treasury: 400,000 × 2% = 8,000 μPRX

  Forecaster share: 200,000 / 600,000 = 33.3%
  Forecaster payout: 200,000 + (392,000 × 33.3%) ≈ 330,667 μPRX

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Repository Layout

praxis/
├── plugin/
│   ├── main.go                  # Entry point
│   ├── chain.json               # Chain metadata (name, symbol, chainId)
│   ├── go.mod                   # Module: github.com/Makaveli912/praxis
│   ├── contract/
│   │   ├── contract.go          # Plugin lifecycle hooks
│   │   ├── constants.go         # Protocol constants and authorized wallets
│   │   ├── keys.go              # State key definitions (0x10–0x2C)
│   │   ├── height.go            # EndBlock epoch processor + PRIS rewards
│   │   ├── helpers.go           # Shared utilities
│   │   ├── handler_*.go         # One file per transaction type (12 total)
│   │   ├── lmsr.go              # AMM pricing logic
│   │   └── *.pb.go              # Generated protobuf structs
│   ├── crypto/
│   │   ├── bls.go               # BLS12-381 key operations
│   │   └── signing.go           # Sign bytes construction
│   └── proto/
│       ├── tx.proto             # Transaction message definitions
│       ├── account.proto        # Account and Pool types
│       └── plugin.proto         # FSM communication protocol
└── ui/
    ├── index.html               # Frontend entry point
    ├── app.js                   # BLS signing + RPC logic
    └── style.css                # Styles

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Getting Started

Prerequisites

• Go 1.24+
• A running Canopy node
• protoc + protoc-gen-go (only needed to regenerate proto files)

1. Set up Canopy node

git clone https://github.com/canopy-network/canopy.git
cd canopy
go build -o ~/go/bin/canopy ./cmd/main
canopy start

2. Clone and build Praxis plugin

git clone https://github.com/Makaveli912/praxis.git
cd praxis/plugin
go build -buildvcs=false -o go-plugin .
cp go-plugin /tmp/plugin/go-plugin

3. Start the node with the plugin

# In a dedicated terminal — never start the plugin manually before the node
canopy start

Watch for:

Plugin go started: go-plugin started successfully
Plugin service listening on socket: /tmp/plugin/plugin.sock

4. Run the frontend

python3 -m http.server 8080 --directory ui

Open http://localhost:8080. Go to Node → set host to localhost → Apply. Green dot confirms connection.

Go to Signer → paste your BLS12-381 private key → Load Key. Your address will be auto-derived and filled into all transaction forms.

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Token

Property	Value
Name	Praxis
Symbol	$PRX
Denomination	μPRX (micro-PRX)
Chain ID	1
Network ID	1

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Protocol Constants

Constant	Value
Creator bond	5,000 PRX
Max open markets per creator	5
Treasury fee	2% of losing pool
Resolver unbonding period	7 days
Initial RRS	10
RRS floor	0
Partial unstake RRS penalty	−10
Full exit RRS reset	10

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License

MIT — see LICENSE