Gensyn launches Delphi, AI-settled markets for creators

Gensyn launched Delphi on Wednesday, an information markets platform that lets creators open niche, creator-owned markets. The company is backed by a16z crypto, Galaxy Digital and CoinFund. Market outcomes are settled automatically by AI models chosen when a market is created, and revenue is paid in USDC.

Delphi runs on Gensyn’s decentralized AI network, a Layer 2 on Ethereum built with the OP Stack. Market creators select an AI model at the outset; the model’s weights are fixed for the life of the market so the model cannot be altered after launch. Gensyn says its reproducible execution environment (REE) produces identical outputs across different hardware, allowing users to rerun model reasoning and verify results.

The platform began a testnet phase in December and recorded what Gensyn described as “millions” in trading volume. Delphi is opening with an invite-only list for market creators while allowing open trading for users. The creator whitelist will expand over time and a mainnet rollout is expected in the coming weeks. Gensyn declined to provide a timeline for its native AI token, which remains pending.

Under the protocol, Delphi charges a 0.5% fee on all trading volume. That fee will be used to buy the native AI token and burn a portion. Creators receive a 1.5% fee on total trading volume for markets that settle successfully, paid in USDC. Traders who provide correct information receive a payout multiple on their trade, while incorrect positions lose their stake.

Gensyn designed initial market mechanics to be self-balancing without outside market makers and said it is in talks with liquidity providers for more complex markets.

Gensyn was founded in 2020 and has raised more than $78 million. The company said the Gensyn Foundation secured $16.14 million in commitments and $11.7 million in proceeds after refunds from an AI token sale in December. Earlier rounds include a $16.7 million raise led by a16z crypto and a $43 million Series A in 2023.

Ben Fielding, Gensyn’s CEO, described the platform’s focus on niche creator-led markets as “the long tail is the point.” He added, “Long term, information markets like Delphi will drive autonomous machine learning,” framing the platform as a source of verified information for model training.