Business Model
Revenue Streams
Primary: Platform Spread
Hunch earns revenue through a spread on betting volume, embedded in the displayed odds:| Metric | Value |
|---|---|
| Standard Spread | 1.5% on all bets |
| Premium Reduction | 0.5% for $HUNCH stakers |
| Revenue Recognition | At bet placement, not settlement |
This model aligns platform incentives with user activity rather than user losses.
Secondary: Premium Features
Hunch Pro
Advanced analytics, early market access, custom alerts
Market Creation
Fees for premium user-created markets
Creator Monetization
Revenue share for successful market creators
Unit Economics
| Metric | Target |
|---|---|
| Customer Acquisition Cost (CAC) | 3 |
| Average Bets per User (Monthly) | 15 |
| Average Bet Size | $15 |
| Monthly Volume per User | $225 |
| Platform Take Rate | 1.5% |
| Monthly Revenue per User | $3.38 |
| CAC Payback Period | < 30 days |
Low CAC is achieved through crypto-native distribution channels (KOLs, airdrops, ecosystem partnerships) rather than expensive traditional advertising.
Financial Projections
| Metric | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|
| Monthly Active Users | 50K | 500K | 2M | 5M |
| Annual Betting Volume | $15M | $150M | $600M | $1.5B |
| Gross Revenue | $225K | $2.25M | $9M | $22.5M |
Path to Profitability
Year 1: Foundation
Focus on product-market fit and user acquisition. Negative unit economics acceptable.
Year 3: Profitability
Premium features launch, staking reduces spread for engaged users. Positive unit economics.
Competitive Moat
| Moat | Description |
|---|---|
| Network Effects | Social graph creates switching costs |
| Data Advantage | User behavior data improves market curation |
| Brand Recognition | First-mover in mobile prediction markets |
| Technical Infrastructure | Session keys and gasless UX are hard to replicate |
| Distribution Partnerships | KOL relationships in target markets |
Use of Funds
| Category | Allocation |
|---|---|
| Engineering | 40% |
| Growth & Marketing | 30% |
| Operations & Legal | 15% |
| Reserve | 15% |
Detailed budget available upon request for investors in active due diligence.