Merin is a decentralized predictive intelligence protocol designed to integrate artificial intelligence with prediction markets. It aims to create a mainstream infrastructure for monetizing information and foresight by combining an AI analysis engine, a modular oracle system, and a cross-market liquidity mechanism. ^{[1] [2]}​

Overview

Merin is being developed to transform collective intelligence and foresight into tradable and verifiable economic assets. The project's stated goal is to establish a continuous feedback loop connecting AI-generated signals, the speculative activity within prediction markets, and the verified outcomes of real-world events. This system is designed to operate on the principles of a borderless, incentivized, and trustless network where participants, including predictors, traders, and validators, interact through smart contracts a on a blockchain. The development of the protocol is being managed by Merin Labs Inc. The protocol is being engineered to address several persistent challenges within the decentralized prediction market sector. These include fragmented liquidity pools that lead to high slippage and poor trading experiences, a lack of trust in outcome resolution mechanisms, and high barriers to entry for users due to prohibitive transaction costs on some networks. The core design of Merin incorporates cross-chain functionality and an advanced liquidity engine to mitigate these issues.

A central aspect of Merin's approach is its emphasis on a flexible regulatory model, which it describes as "regulatable but unrestricted." This is intended to be achieved through a modular compliance framework that allows for the optional inclusion of jurisdictional-specific rules, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. This design choice seeks to balance the open, permissionless nature of decentralized finance with the potential for adherence to regional legal standards where required. ^{[2] [3] [1] [4]}

Architecture

Multi-chain Interoperability Layer

The foundation of the protocol is its multi-chain interoperability layer, which is designed to ensure the platform is not confined to a single blockchain. This layer is being built for compatibility with multiple networks, with initial support planned for Ethereum, Arbitrum, BNB Chain, and Solana. The purpose of this layer is twofold: to facilitate seamless cross-chain settlement of markets and to lower the barriers to participation for users. By providing access through Layer 2 solutions like Arbitrum and other chains with lower transaction fees, the protocol aims to make creating and trading on markets more cost-effective. This interoperability is designed to allow assets and data to move between supported chains, broadening the platform's reach and user base. ^{[3] [2]}​

DeepFlow Liquidity Engine

The DeepFlow Liquidity Engine serves as the core liquidity backbone of the Merin protocol. It is designed to solve the common problem of fragmented liquidity in prediction markets, where each event market has its own isolated pool of funds. Instead, the DeepFlow engine utilizes a shared collateral pool that aggregates funds from across the entire platform. This aggregated capital can be accessed by any market, a mechanism intended to create high-depth trading environments and minimize slippage for traders. ^{[1] [3]}​

AI-Augmented Market Layer

A key component of Merin's design is the integration of an AI-Augmented Market Layer. This layer incorporates machine learning models directly into the protocol's market functions to enhance efficiency, security, and the user trading experience. One of its primary proposed functions is real-time AI signal generation, where the engine analyzes vast datasets to provide predictive insights and signals that traders can use to inform their decisions. The AI is also intended to optimize automated market-making (AMM) strategies and facilitate dynamic pricing adjustments based on incoming information and trading activity, which helps in maintaining accurate market odds. ^{[1] [3]}​

Oracle and Settlement Layer

To ensure the integrity of market resolutions, Merin's architecture includes a dedicated Oracle and Settlement Layer. The reliability of outcome reporting is critical for any prediction market, as incorrect settlement can undermine user trust and platform viability. To address this, Merin proposes a multi-layer oracle validation process. This system is designed to be modular, meaning it can draw upon multiple independent data sources and validation mechanisms to confirm the outcome of an event. ^[3]​

RegAdaptive Framework

The RegAdaptive Framework functions as the protocol's optional compliance layer. This component is designed to provide a flexible approach to regulatory adherence, aligning with the project's goal of creating "regulatable but unrestricted" markets. The framework is modular, allowing market creators to optionally integrate specific compliance tools based on the nature of their market or its target jurisdiction. These tools include support for Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, where users might need to verify their identity to participate in certain markets. ^[3]​

Ecosystem

Merin operates a collaborative, multi-chain ecosystem supporting prediction markets and interoperability.

• Cross-Chain Integration:

  • Deployed across multiple networks using bridging protocols such as LayerZero and Axelar
  • Supports Ethereum, Arbitrum, Solana, BNB Chain, and Base
  • Enables cross-chain trading via a unified account system (zk-ID Wallet) without repeated authorization

• AI Collaboration:

  • Partners with independent AI projects for shared data signal utilization
  • Provides open APIs for AI models to generate prediction events and price signals
  • Develops an “AI-as-a-Prophet” alliance to support AI-driven prediction markets

• Developer and Community Programs:

  • Merin Builders Program: Offers SDKs, oracle APIs, and analytics tools for developers
  • Prediction Fellowship: Funds innovative prediction models and experimental markets
  • Community Bounties: Rewards community contributions to protocol improvement ^[8]

Use Cases

• Forecasting financial market movements, such as stock indices, commodity prices, and cryptocurrency price action.
• Predicting the outcomes of political events, such as elections and referendums, and modeling geopolitical developments.
• Wagering on the results of real-world events in domains like sports, entertainment awards, and scientific milestones.
• Aggregating corporate and economic intelligence from a decentralized crowd of experts to inform business strategy and investment decisions.
• Allowing individuals, DAOs, or AI models with superior foresight to monetize their predictive abilities.
• Providing tools for institutional and individual risk management by hedging against exposure to specific event outcomes.
• Serving as a platform for AI-assisted trading and advanced market analysis powered by the protocol's integrated AI engine. The protocol is designed to turn these predictive insights into tangible, tradable economic assets. ^{[1] [3]}

Road Map

• Phase 1 (2025 Q4): Test launch of the mainnet, release of core prediction markets, and testing of zk-AMM functionality.
• Phase 2 (2026 Q1): Deployment of the AI prediction engine and the zk-Incentive Proof model.
• Phase 3 (2026 Q3): Launch of DAO governance and activation of full cross-chain bridging.
• Phase 4 (2027+): Expansion into an AI-driven global prediction market infrastructure. ^[9]

Tokenomics

$MRN Token

The $MRN token serves as the governance token of the Merin platform. Holders can engage in protocol governance by submitting proposals and voting, and can receive a share of platform revenues, including fees and oracle node rewards. Long-term staking of $MRN provides both governance rights and participation in protocol returns. The token has a fixed supply of 100 million units and does not feature an inflation mechanism. ^[6]

Allocation

• Ecosystem Incentive Pool: 30%
• Team & Advisors: 20%
• Community & Governance Rewards: 20%
• Strategic Partnership & Foundation Reserve: 20%
• Public/Private Sale: 10% ^[6]

$PRED Token

• Purpose: Serves as the utility and transaction token of the Merin platform.

• Use Cases:

  • Market trading, event creation, and settlement fees
  • Base asset for AMM pools and liquidity incentives
  • Staked to support zk-proof computation nodes

• Issuance Model:

  • Elastic supply that automatically expands or contracts based on market trading volume
  • Minting and burning are executed transparently via smart contracts to maintain liquidity stability ^{[7] [6]}

The protocol is engineered for multi-chain interoperability to enhance accessibility and reduce transaction costs. The blockchains planned for initial compatibility include:

• Ethereum
• Arbitrum
• BNB Chain
• Solana ^{[2] [3] [5]}