Skip to main contentSpace is built with the belief that prediction markets can become a permissionless oracle of insight - a tool that helps societies, institutions, and individuals make decisions across an unlimited range of questions.
Prediction markets should be everywhere. They should inform policy decisions, guide capital allocation, and help societies coordinate around truth. Instead, they’re niche tools used by a small group of sophisticated traders.
The Perfect Storm
Three forces are converging to make prediction markets mainstream:
- Technology is Ready
Blockchain infrastructure has matured. Solana delivers the speed and cost structure needed for high-frequency, small-stake markets. Smart contracts can enforce rules transparently without intermediaries.
- Culture is Primed
The 2024 election put prediction markets into the spotlight. Polymarket dominated news cycles. Crypto natives embraced gambling mechanics through pump.fun and memecoins. The appetite for markets-as-entertainment has never been higher.
- Demand is Undeniable
Institutions need better forecasting tools. Individuals want exposure to outcomes they understand. Capital is searching for uncorrelated returns. The demand exists - the supply hasn’t matched it yet.
The Opportunity
On top of the window of opportunity now open for prediction markets, there are also challenges that demand solutions. Most of which are well recognized - by builders, analysts, and investors alike - and are waiting for decisive answers (ChainCatcher, 2024).
Liquidity Crisis: Markets outside major US elections are thin and easily manipulated. A $10,000 trade can swing odds by 10%+ on important but niche topics. This makes prices unreliable and discourages serious participation.
Capital Inefficiency: Users lock funds until resolution - sometimes months or years. Returns are capped (0 to 1) which provides low return rates by default (no leverage). No ability to provide liquidity across multiple outcomes. Capital sits idle when it could be working harder.
Poor User Experience: Platforms decide what you can trade on and keep 100% of platform fees. No retention mechanics like daily tasks, streaks. No rewards for contributing liquidity. No incentive to stay beyond a single trade.
Expert Exodus: The people with the best information often don’t participate. Why? Returns are too low, markets are too illiquid, and there’s no way to signal expertise beyond placing a single trade. Markets miss the very insights that would make them valuable.
Result: Prediction markets remain a curiosity instead of infrastructure.
How Space Wins
Space is designed to solve these issues through the following core innovations:
- Architecture: True price discovery through transparent order books. Users trade against each other, not the platform. Market manipulators are penalized with higher fees.
- Multi-Outcome Markets: Pool liquidity across related outcomes. One deep market instead of ten shallow ones.
- Liquidity Rewards: Earn for providing depth. The more useful your capital is to the platform, the more you earn.
- Leverage Multiplyer: Position sizes without locking more capital. Better returns attract bigger participants.
- Continuous Trading: Don’t wait months for resolution - exit anytime. Manage risk like a real trader.
- Engaging User Experience: Points system rewarding active engagement on the platform, liquidity provision and early participation. Trading competitions, referral rewards, leaderboards and achievements.
Result: Deep liquidity on diverse markets. Competitive returns that justify expert participation. Daily engagement that builds community. Reliable pricing that institutions can trust.
Prediction markets as infrastructure, not just curiosity.