Abstract

Torch is a decentralized prediction protocol designed to identify crypto tokens likely to experience significant near-term price changes. The system leverages informed AI agents trading alongside human speculative bets to create a dynamic, self-adjusting ecosystem aligned with Info Finance principles.

The framework employs a probability distribution model, allowing traders to assess risk-adjusted potential returns based on price-time relationships. By integrating AI-driven forecasting, aggregated liquidity, and ongoing system adaptation, Torch provides a robust, scalable, and manipulation-resistant prediction platform.

Key advantages

Torch’s сontinuous token prediction market unlocks:

• Scalability: No need to fragment liquidity across thousands of discrete questions

• Expressiveness: Traders can specify confidence via range width, time horizon, and deviation from consensus

• AI readiness: The format is optimized for AI agents placing narrow, high-confidence interval predictions at scale

• Signal utility: The resulting time–price surface is Public Goods, useful for bots, researchers, and traders tracking sentiment and volatility