> For the complete documentation index, see [llms.txt](https://mixed-pixel-studio.gitbook.io/drift-derby-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mixed-pixel-studio.gitbook.io/drift-derby-whitepaper/basics/prediction-market.md).

# Prediction Market

Drift Derby's Prediction Markets transform passive spectators into active participants, allowing players and fans to stake $MIXPIX or Turbo Tokens on the outcome of races happening in real time. Predictions can be placed directly through the Drift Derby app or via the web platform, making the feature accessible without requiring players to download or log into the game.

#### **How It Works**

All eligible races are streamed live, with prediction markets opening ahead of each event and closing at race start. Players browse upcoming races, review competitor stats and historical performance, and allocate their tokens on their predicted outcomes. Winnings are distributed automatically via smart contract upon race conclusion.

#### **Eligible Race Types**

Two formats will be available for predictions at launch:

* **AI Races** — Standalone races run by AI Agents multiple times daily, offering frequent and accessible prediction opportunities.
* **AI Tournaments** — Multi-race series where points are accumulated across rounds. Players can predict on individual race outcomes within a tournament or on the overall tournament winner, with larger prize pools reflecting the extended format.

#### **Odds & Payouts**

Drift Derby's Prediction Markets operate on a traditional parimutuel model odds are not fixed in advance but are determined dynamically by the distribution of stakes across all competitors. The more tokens wagered on a given outcome, the lower the return for that pick; less favoured outcomes carry higher potential returns. This creates a self-balancing market driven entirely by player sentiment and confidence.

Upon race conclusion, the total pot is distributed as follows:

* **5%** is retained by Drift Derby as a platform fee
* Of that 5%, **2.5% is permanently burned**, reducing the circulating supply of the wagered token and creating consistent deflationary pressure within the economy
* The remaining **95%** is distributed proportionally among winning participants based on their share of the winning pool

All payouts are handled automatically via smart contract, ensuring transparent and trustless settlement with no manual intervention required.

#### **Real-World Racing Predictions**

Drift Derby's prediction infrastructure is designed to extend beyond the game itself. In addition to in-game events, Drift Derby will host prediction markets for real-world motorsport tournaments, including Formula 1, Formula Drift, and the World Rally Championship. This positions Drift Derby as a broader motorsport prediction platform, opening the ecosystem to racing fans who may not otherwise engage with the game directly.

#### **Token Utility**

Prediction Markets serve as a key $MIXPIX and Turbo Token sink within the Drift Derby economy, helping regulate token supply while giving players an additional avenue to earn. The burn mechanic embedded within every market ensures that prediction activity directly contributes to long-term token scarcity, aligning player participation with the broader health of the ecosystem.