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The Coordination Engine of Crypto

Polymarket proved markets shape outcomes. But those markets are passive observers—they aggregate predictions, they don’t mobilize action.

We’re building the active version. Reflexivity becomes the core feature, weaponized to manufacture the future.

[ TL;DR ]

Hyperstitions turns prediction markets into coordination markets.
Protocol sets a goal. Participants bet YES + take action. If the goal is achieved, everyone profits: the bet pays out.
The trick: we subsidize the NO side. This makes YES cheap, which makes coordination profitable. Bettors aren’t spectators—they’re aligned with the outcome they’re betting on.

Bitcoin is a hyperstition. People believed it had value, so it acquired value, so more people believed. We’re building infrastructure for intentional hyperstitions.

Observer Effect
[ Click to expand ]

[ Hyperstitional Cycles ]

A protocol has a goal. Maybe it’s:
  • 30% TVL increase sustained for 1 hour
  • An analytics dashboard gets built
  • A major influencer mentions the product
  • A new feature ships by end of quarter
Hyperstitional Cycles find the price of making it happen.

How It Works

Protocol defines the goal and sets a deadline. Before the market opens, the protocol subsidizes the NO side—this makes YES cheap and coordination profitable.
Participants assess: “Is this achievable? What’s it worth to me?” If YES is cheap and the goal seems within reach, they bet YES and start coordinating.
If the cycle fails, the protocol learns. Next cycle: higher subsidy, adjusted target, new attempt. Incentives compound until coordination succeeds.

Example: TVL Growth

Protocol wants 30% TVL increase for 1 hour.
Cycle 01[NO]
Subsidy: $20K
Result: 18% increase, close but not enough
Learning: Community is willing, needs more incentive
Cycle 02[NO]
Subsidy: $25K
Result: 27% increase, almost there
Learning: Threshold is near, push harder
Cycle 03[YES]
Subsidy: $30K
Result: 34% increase sustained
Payout: Coordinators profit from the bet payout
The protocol discovered that 30% TVL costs ~$30K to coordinate. This is incentive price discovery—something that’s never existed before.

Why Alignment Matters

When you bet YES on TVL growth, you’re not a spectator. You’re incentivized to make it happen: deploy liquidity, onboard friends, write threads, build tools.
If the goal hits, your bet pays out—and you helped make it happen. Betting and building become the same action.

[ How We’re Different ]

Participants
Traditional PM:
Passive speculators
Futarchy:
Governance voters
Opp Markets:
Private info sellers
Hyperstitions:
Active coordinators
Action
Traditional PM:
Bet on outcome
Futarchy:
Bet on policy impact
Opp Markets:
Bet to reveal alpha
Hyperstitions:
Bet + Build
Price Visibility
Traditional PM:
Public
Futarchy:
Public
Opp Markets:
Private (sponsor)
Hyperstitions:
Public
Mechanism
Traditional PM:
Info aggregation
Futarchy:
Policy selection
Opp Markets:
Info discovery
Hyperstitions:
Coordination
Outcome
Traditional PM:
Accurate prediction
Futarchy:
Policy chosen
Opp Markets:
Sponsor gets alpha
Hyperstitions:
Outcome manifested
Public prices are the key. When everyone sees the same Schelling point, collective action organizes around it. Private prices discover information. Public prices mobilize coordination.

[ PAMM ]

Hyperstitions uses a Pot-split AMM (PAMM)—parimutuel-style betting with constant-product pricing and virtual liquidity.
How it works: When you buy YES, you pay into a shared pot. The price you pay reflects the current implied probability—cheap when few believe, expensive when many do. At resolution, winners split the entire pot proportionally.
Why this matters: No orderbook, no external LPs needed. Virtual liquidity means we can run short cycles (hours, not weeks) with continuous price discovery. Early believers who coordinate successfully get rewarded more than late arrivals who pile in after the hard work is done.
The dynamic: Price rises as more people bet YES → pot grows → potential payout per share changes based on how crowded the winning side becomes. This creates natural incentive alignment: coordinate early, build conviction, profit from being right and early.

[ Phases ]

Phase 01+Active

[ Exploration ]

We prove the mechanism across diverse market types.

Markets include:

  • “Will X KOL post about the product in the next 6 hours?”
  • “Will protocol TVL exceed Y for Z hours?”
  • “Will the project reach top 3 of the Kaito Info Markets leaderboard?”

Cycle durations vary by market type. Because we use virtual liquidity, we can create short time windows—hours rather than days or weeks—while maintaining continuous price discovery. The cycle system remains: incentives scale over time as coordination momentum builds.

During Exploration, we partner with chains and protocols to create related coordination markets.

Phase 02+Pending

[ Crypto Coordination Layer ]

A few months away

Fully permissionless. Anyone can:

  • Create coordination markets for any outcome
  • Use Hyperstitions as the base layer for new coordination campaigns
  • Add coordination mechanics to any on-chain asset

Hyperstitions becomes the coordination layer for crypto.

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