> ## Documentation Index
> Fetch the complete documentation index at: https://docs.gotahunch.net/llms.txt
> Use this file to discover all available pages before exploring further.

# Business Model

> Revenue streams, unit economics, and financial projections

# 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 |

<Info>
  This model aligns platform incentives with user activity rather than user losses.
</Info>

### Secondary: Premium Features

<CardGroup cols={3}>
  <Card title="Hunch Pro" icon="crown">
    Advanced analytics, early market access, custom alerts
  </Card>

  <Card title="Market Creation" icon="hammer">
    Fees for premium user-created markets
  </Card>

  <Card title="Creator Monetization" icon="money-bill">
    Revenue share for successful market creators
  </Card>
</CardGroup>

## Unit Economics

| Metric                          | Target         |
| ------------------------------- | -------------- |
| Customer Acquisition Cost (CAC) | $1 - $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** |

<Note>
  Low CAC is achieved through crypto-native distribution channels (KOLs, airdrops, ecosystem partnerships) rather than expensive traditional advertising.
</Note>

## 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

<Steps>
  <Step title="Year 1: Foundation">
    Focus on product-market fit and user acquisition. Negative unit economics acceptable.
  </Step>

  <Step title="Year 2: Growth">
    Scale user base, optimize CAC. Approach break-even.
  </Step>

  <Step title="Year 3: Profitability">
    Premium features launch, staking reduces spread for engaged users. Positive unit economics.
  </Step>

  <Step title="Year 4+: Scale">
    Expand to new markets, launch B2B products. Strong profitability.
  </Step>
</Steps>

## 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%        |

<Info>
  Detailed budget available upon request for investors in active due diligence.
</Info>