VELOCITY
MARKETS

The Gap in the Market

Motorsport commands one of the most loyal and analytically sophisticated fan bases in global sport. Formula 1 alone draws over 750 million television viewers per season. MotoGP, NASCAR, and IndyCar add hundreds of millions more. These fans study qualifying data, tyre strategies, team radio, and historical circuit performance. They are, in many respects, better informed than casual sports predictors, yet the existing infrastructure for monetising that knowledge is poor.

The current options for fans who want to act on their race-day knowledge fall into three camps:

• Traditional sportsbooks, which carry house edges, opaque pricing, geographic restrictions, and a fundamental conflict of interest between the platform and the user.
• Generic prediction platforms that treat motorsport as an afterthought, with limited market depth, poor data integration, and no community mechanics built around race culture.
• Existing crypto prediction markets, which are broad-purpose and not designed with motorsport timing, session structure, or fan behaviour in mind.

Why Generic Crypto Prediction Platforms Don't Solve This

Polymarket is the most prominent decentralised prediction platform in the world. It operates on a binary outcome model, you buy shares in Yes or No on a given question, and prices adjust based on collective probability estimates. It is well-designed for political events, macroeconomic outcomes, and discrete yes/no questions.

But motorsport prediction is fundamentally different:

• Races have ten or more podium-relevant outcomes. Binary markets cannot capture the nuance of predicting a top driver finish from a field of twenty+ drivers.
• Pool timing is critical. Prediction positions should lock at a specific moment, qualifying, formation lap, or race start, and Polymarket's continuous market model is not designed around structured event windows.
• Motorsport fans want to predict relative positions (finishing within the top segment of the field) not just winners. The ability to call a driver finishing P4 versus P6 requires a positional scoring system that binary markets cannot support.
• Community is central to the experience. Race prediction is inherently social, fans want to compete against each other, not an abstract market. Building a community around Velocity Markets for future growth is just as important as the platform itself.

Velocity Markets is built specifically to fill this gap: a platform that understands race structure, respects the intelligence of motorsport fans, and operates with full on-chain transparency.

How It Works

Velocity Markets operates on a pari-mutuel pool model. When a prediction event opens, for example, the Formula One Australian Grand Prix – Qualifiers, a pool is created for that event. Users enter the pool by backing a driver to finish within the top 10 and committing funds. At pool close (a defined cut-off before the event begins), no new entries are accepted.

When the result is confirmed by the oracle, users who backed a driver (s) who finished in the top 10 share the total pool proportionally, after a small platform fee is deducted. There is no counterparty and no house taking the other side of your position.

Multiplier Tier System

Each driver in a pool carries a live multiplier that reflects two things: their recent season performance, and how much of the current pool is already backing them. A driver who has dominated the season starts with a lower multiplier when the pool opens because the market already expects them to perform. A driver in the midfield with a strong circuit history but little backing can carry a 3.5× multiplier if fewer than 1% of the pool is on them. As users back a driver and their pool share grows, their multiplier compresses automatically. At the same time, drivers with less backing see their multipliers rise, the system continuously rebalances across the full field to reflect real demand.

Position Scoring

VelocityMarkets rewards you based on three things: who you back, the multiplier they have when you back them, and where they finish.

All predictions are pooled together. When the race ends, a 5% platform fee is deducted and the remaining 95% is distributed to winning predictions, those backed on drivers finishing P1–P10 — in proportion to their adjusted points.

Why Solana

Velocity Markets is built on Solana because the technical requirements of a live prediction market, high transaction throughput, low latency settlement, and negligible fees, are uniquely well-served by Solana's architecture.

At peak usage, a single race weekend can generate thousands of pool entries within a short window. Ethereum mainnet and most EVM-compatible chains cannot process this volume without either congesting or imposing fees that make small-stakes participation uneconomical. Solana processes over 65,000 transactions per second with typical fees below $0.001.

Smart Contract Architecture

The core platform logic is implemented as a set of Solana programs (smart contracts) written in Rust using the Anchor framework.

The principal programs are:

• Pool Program: Creates and manages prediction pools, accepts entries, enforces multiplier tier logic, and handles pool close.
• Settlement Program: Reads verified result data from the oracle feed, calculates winner shares, and distributes funds.
• Token Program: Manages $VM token interactions, and fee discounts.
• Governance Program: Handles Holders $VM weighted voting for series additions, fee parameter changes, and protocol upgrades.

All programs are non-upgradeable after audit sign-off on the core pool and settlement logic. Governance changes go through a time-locked multisig process, no single party can alter settlement mechanics unilaterally.

The Dual Currency Model — Why It Matters

Many crypto platforms force users into their native token. This creates a legitimate concern: if the project token collapses, so does your ability to participate, and your held value evaporates with it. We have heard this concern from our community, and we have built around it deliberately.

On Velocity Markets, you can participate in any prediction pool using SOL, Solana's native currency with deep liquidity and an established market. You are never required to buy or hold $VM to use the platform. The $VM token exists to provide additional benefits to committed community members, not to create a captive ecosystem.

This distinction matters. It separates Velocity Markets from projects where token utility is manufactured to prop up a price.

Our token utility is real because opting into it is a choice.

$VM Token Utility

Minting

New $VM tokens are created exclusively when users convert SOL to $VM through the platform's liquidity pool. This is entirely demand-driven, supply only increases when users actively choose to enter the $VM ecosystem. There is no scheduled issuance or arbitrary inflation.

• New $VM is created exclusively when a user converts SOL to $VM through the AMM.
• No scheduled inflation: supply only grows when users actively choose to enter the ecosystem.
• Minting cost anchors value: $VM has a natural price floor relative to the prevailing SOL rate.

Value Appreciation Mechanism

$VM value is driven by three forces:

• Demand-led minting: new supply only enters when users actively convert SOL, anchoring supply growth to genuine demand.
• Burn-driven scarcity: SOL fee revenue continuously removes $VM from circulation, reducing supply as volume increases.
• Utility premium: fee-free prediction creates persistent, rational demand from active users beyond pure speculation.

Platform Fee Structure

Platform fees are transparent and fixed in the protocol. Users always know the cost before entering a pool.

Velocity Markets operates a 3% transaction fee on all prediction pool exits (settlements) made using SOL. Users who hold and predict with $VM pay zero fees. This creates a direct, repeatable financial incentive to acquire and hold $VM, the more actively a user participates, the greater the compounding benefit of using $VM over SOL. Platform revenue is split between the protocol treasury (for operations and development) and a $VM token burn mechanism that permanently removes a percentage from supply over time.

Core Team

Advisors

Primary Audience — Crypto-Native Prediction Market Users

Our primary target is the existing crypto-native audience that participates in on-chain prediction markets. This community is already comfortable with wallets, DEX interactions, and token mechanics. They are actively looking for novel prediction opportunities beyond politics and macroeconomics. Motorsport, with its global calendar, high-frequency events, and rich data ecosystem is an underserved vertical within this audience.

The on-chain prediction market sector processed over $1 billion in volume in 2024, with Polymarket responsible for the majority. The addressable slice of this market that is motorsport-relevant is currently near zero because no purpose-built product exists. We are not competing for share of an existing pile; we are opening a new category.

Secondary Audience — Motorsport Fans

Formula 1’s fanbase grew by over 40% between 2018 and 2024, driven substantially by younger audiences attracted via digital media. MotoGP, NASCAR, and IndyCar similarly attract tens of millions of engaged fans who follow teams drivers and data closely. The crossover between motorsport fandom and crypto literacy is growing, particularly among 18–35 year olds.

For this audience, Velocity Markets offers a low-friction onboarding experience. SOL wallet setup takes minutes. Participation using SOL means no token purchase required to start.

The onboarding funnel is:
Fan → wallet user → SOL participant → $VM holder, and users can stop at any step.

Competitive Landscape

Growth Potential

If Velocity Markets captures 0.5% of the current global motorsport prediction market, estimated at over $5 billion annually, that represents $25 million in annual platform volume. At our fee structure, that generates meaningful protocol revenue. Our ambition is to become the default prediction layer for every major race weekend globally. The infrastructure is designed to support that scale.

Regulatory Approach

The regulatory environment for prediction markets and crypto tokens varies significantly by jurisdiction. Velocity Markets is structured to comply with applicable regulations in the jurisdictions where it operates, and access controls are implemented to restrict participation where required by law.

We are not lawyers, and this whitepaper does not constitute legal advice. If you are uncertain whether participation in Velocity Markets is lawful in your jurisdiction, please consult qualified legal counsel before proceeding.

$VM Token Classification

The $VM token is a utility token. It confers access to platform fee discounts, governance voting rights, and future rewards generated by platform activity. It does not represent equity, profit participation, or any claim on Velocity Markets assets.

We have taken legal advice on token legal structure. We will not pre-empt regulatory outcomes by making definitive statements about token status in any specific jurisdiction, as these determinations are evolving globally.

Restricted Jurisdictions

Access to Velocity Markets is restricted for users in jurisdictions where on-chain prediction market activity is prohibited, as identified by ongoing legal reviews. This list will be published and maintained on the platform website.

Risk Disclosures

Participating in Velocity Markets involves risk. Please read the following carefully:

• Prediction market participation carries the risk of total loss of your entry amount. You should only participate with funds you can afford to lose.
• Cryptocurrency values are volatile. The SOL and $VM you hold can decrease in value independent of your prediction performance.
• Smart contracts can contain bugs. Despite auditing, no smart contract is risk-free. Our audit report will be published pre-launch.
• Liquidity risk: $VM is a new token. There is no guarantee of secondary market liquidity at any given time.
• Regulatory risk: The regulatory environment for crypto prediction markets is evolving. Changes in law could affect platform availability in your jurisdiction.
• Oracle risk: Incorrect or delayed race result feeds could affect settlement. Our oracle architecture uses multi-source confirmation to mitigate this.

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