Core Viewpoint - Prospect Prediction Markets Inc. has entered into a development and platform agreement with Intellistake Technologies Corp. to create a sports-focused prediction market platform that addresses liquidity challenges in prediction markets through a new software solution called Gravity [1][2][3]. Company Overview - Prospect Markets is focused on developing a regulated prediction market platform that covers major North American sports leagues and international competitions, aiming to enhance fan engagement through real-time prediction markets [3][11]. - Intellistake is a publicly traded company that develops software solutions leveraging decentralized AI infrastructure for enterprise-grade intelligence [1][16]. Agreement Details - The agreement includes a total consideration of up to US$1,150,000 for the development and licensing of Gravity, with US$1,000,000 expected to be paid through the issuance of shares of Prospect Markets, subject to stock exchange approval [8]. - Prospect Markets will co-fund the development of Gravity, which will be built in three stages: Stage A (Proof of Concept), Stage B (Minimum Viable Product), and Stage C (full production release) [2][4]. Development Phases - Gravity's development will begin with Stage A, lasting approximately four weeks, followed by Stage B (four to six weeks later) and culminating in Stage C (ten weeks after Stage B) [3][4]. - The total development costs for Gravity are expected to be US$300,000, with a subsequent licensing fee of US$25,000 per month for 24 months after Stage C [4]. Market Context - The prediction markets sector is experiencing rapid growth, particularly in sports, with Kalshi reporting over $1 billion in daily trading volume during the Super Bowl, marking a 2,700% year-over-year increase [7]. - Despite this growth, thin liquidity remains a significant barrier to wider adoption, which Gravity aims to address [7][12]. Gravity's Functionality - Gravity is designed to enhance liquidity and execution in prediction markets, addressing issues such as extreme odds, one-directional trading rushes, and the cold-start problem for new markets [5][14]. - The software will implement auction-based mechanisms to accelerate price discovery and improve market depth from launch [14]. Future Outlook - Further updates on the development milestones and integration of Gravity into the Prospect Markets platform will be provided as progress is made [9].