Why Sapio

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A reserve needs rules for choosing its assets. Sapio uses staked competition to choose additions within those rules.

Governance sets eligible assets, price rules, and competition limits. Participants then stake SAPIO behind their proposed additions.

//A forecast leads to action

A proposer is a participant who stakes on an eligible asset. The stake helps determine what the reserve should acquire.

Public sellers supply assets first. Proposers must deliver their assigned remainder or face the round's default rules.

The reserve can acquire less than the target when delivery remains incomplete.

Stake explains proposals. Settle explains asset delivery.

//Each competition has a common starting point

Sapio fixes one reference price for each eligible asset at the start of a competition. Every position for that asset uses the same price.

Later checkpoint prices determine performance from this fixed starting point. The delivery price does not replace the reference price used for scoring.

The system benchmark is a stake that represents the current reserve. Proposer positions compete with this benchmark and with each other.

Redistribute explains how performance divides the stake pool.

//Stake creates influence and risk

More stake gives a proposal more influence on the target. Each competition limits how much that target can change.

Later payouts depend on every competing position. A proposal that beats the system benchmark can still lose stake.

Proposers also face delivery costs and the cost of locking their stake.

//What remains open

Sapio aims to improve reserve selection. The theory does not establish that repeated competitions produce a better reserve for holders.

The design also depends on reliable prices, available markets, and transferable assets. It does not guarantee truthful forecasts or profitable participation.

Security explains these limits. The Master Key describes the wider goal.