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truthcoin as I am currently making it will support multisig for every type of money.
votecoins can be held in a way so that any 2 of 3 people can use them to vote, or spend them.
Shares from markets can be owned by 20 people, such that any 13 of them can spend it or sell it.

Is this a bad thing that I should remove, or should I leave it this way?

Myths show up for a reason. Often it is a concealed threat.
Prometheus was greatly punished for giving fire to humanity.

A lot of powerful people will be harmed by the creation of truthcoin.
Will they take it out on the creators?

I figured out how to run R code from python. I have access to all the functions, but I don't know when to use which one...

When a decision is proposed to the voters, they all vote on how high the fee will be to mediate this decision.
Which function do you use to turn all the suggested prices into one price?

After all the votecoin holders vote on a set of decisions, a matrix is formed. Voters x Decisions. I think I know how to build this matrix.
Your code transforms the matrix into a list of outcomes of each decision, and you punish/reward every votecoin holder.
Which function is used for this part?

(just talking about consensus mechanism and votecoin holders now. Not yet caring about PMs or shares.)
Is there anywhere else I need to use Paul's code, besides the two places I specified?

What if a pool of votecoin holders only gets asked 1 decision? Is it ok that the matrix is only 1 column? Will this be any less accurate?

people will want to prediction the future exchange rate between all sorts of things.

If there are 1000 possibilities, the initial liquidity has to be bigger than when there are only 2 possibilities.  ln(1000)/ln(2)=~10, so it has to be about 10 times bigger.
The initial deposit grows with log base 2 of the number of possible outcomes.

The number of decisions required to reach consensus on a number can also scale by the log.
instead of this list of questions:
"is BTC/USD bigger than 600"
"is BTC/USD bigger than 601"...

We ask this set of questions:
"is BTC/USD modulus 2 equal to 1"
"is BTC/USD modulus 4 equal to 1"
"is BTC/USD modulus 8 equal to 1"....

So the number of decisions necessary to build the market grows by log base 2 of the number of possible outcomes.

It looks like there are a lot of different kinds of market makers. Would there ever be a reason to implement a Bayesian version of truthcoin? Or some other type of market maker?

this caught my attention http://www.cse.wustl.edu/~allenlavoie/papers/bmm.pdf

When a market is created, the creator should be able to guess at the initial price.
If his initial guess is fairly accurate, then he can reduce the cost of financing the market.

For instance... maybe 4 coins will be flipped in the future, and the market is deciding whether all 4 will land on heads, or if at least one will land on tails.
If he starts the market price at 0.50, then smart investors will quickly push the price to 0.0525, and they will probably take almost the entire beta*ln(2) deposit.

The creator of the market could have started the price at 0.0525, and then he would have made a profit instead of losing money.

I feel like letting people have open buy/sell orders at a specific prices solves the same problem.

For instance, if B in a market was only 1 coin, and I put 100 coins at the price 0.56
Then I would keep buying shares until it cost more than 0.56 for a share, then I stop buying. The remainder of my 100 coins is ready to buy more, if anyone else should ever push the price below 0.56

I don't like changing beta, because I think it pushes the price towards 0.50? Maybe I am wrong about this problem?

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This very popular thread has a lot of links in it that point to unmaintained code.
My efforts to build truthcoin are happening here now: https://github.com/BumblebeeBat/FlyingFox

I used what I learned from slasher when I built FlyingFox. slasher was a prototype.
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https://github.com/zack-bitcoin/slasher

I made this small cryptocurrency specifically for building things like truthcoin out of it. It is a pure POS currency like blackcoin, but does not use any bitcoin code. It is all python that I wrote.

New transaction types can be quickly added by editing the transactions.py file.
I am trying to figure out all the transactions for implementing truthcoin, here is what I have so far:

1) create a jury.
Creates some money. The holders of this money collectively vote on decisions. If they vote well, the money grows, if they vote bad, it shrinks. Juries might specialize for topic. Maybe one group of jurors only does basketball games, another deals with politics, etc. They can all have different fees as well.

2) offer a decision to the jury.
Decisions have text explaining "Obama will win the presidential election" and a date that it expires, like 2 weeks after the election. When it expires, the jury comes to consensus about the outcome.

3) jury votes to accept a decision, or to reject it.
Juries don't want to deal with vague sounding decisions that are hard to decide on. They don't want to have to drive far, or waste much time learning something new.

4) juries vote on the outcome of a decision after it expires.

5) anyone can create a new prediction market.
(in ethereum speak, a prediction market is a type of "contract")
The prediction market depends on a bunch of undecided decisions that juries have agreed to.
The PM sells at least 2 types of tokens, one type will eventually be declared a winner, and it will be worth 1 truthcoin. all the other types go to zero.
Each PM only accepts one type of money. Either truthcoins, or one type of token.

6) anyone can buy tokens from any prediction market.

7) anyone can sell tokens to the prediction market they purchased it from.
*not always true. The author of a PM can choose to disallow this feature. disallowing the selling of tokens is useful in the case of funding public goods.

the ability to spend truthcoins, to spend the tokens that you buy from PMs, and to spend the juror money.

Does this seem like sufficient transaction types for the entire truthcoin? or am I missing something?