Withthisinmind,therulesforthe$10millionX-Prizeweredrafted.TowintheX-prize,youhadto:
·Buildamannedspacecraftwithoutanygovernmentfunding.
·Launchthreepeopleinthespacecrafttoanaltitudeof100kilometersandreturntotheEarth.
·Repeatstep2withthesamespacecraftwithintwoweeks.
"Toreach100kilometers,thewinningshipwouldhavetotravelMach3—threetimesthespeedofsound.Eventhoughthatrequiredonly1/25theamountofenergyneededtoreachorbit,itwasstillfasterthananyprivateaircrafteverbuilt.Althoughthecraftcouldclimbthroughloweraltitudesbyconventionalmeans—jetenginesoraballoon—itwouldneedarocketenginetomakethefinalruntospace.Itwouldneedalifesupportsystemtokeepthepilotandpassengersalivelongenoughtoreentertheatmosphere,andsomekindofmaneuveringthrusterstoorientitcorrectlyforreentry.ItwouldhavetobesturdyenoughtosurvivetheheatandbuffetingcreatedbyMach3,andithadtolandingoodenoughshapetomakethetripagainwithintwoweeks.Theentirespacecraftandallofitsenginesandtankshadtobereusable."
—MichaelBelfiore
Therewereafewminordetailsstilltobeworkedout—suchaswherethe$10millionrequiredfortheprizewasgoingtocomefrom—butDiamandisgottowork.HeenlistedthehelpofapartnerByronLichtenbergandestablishedtheX-PrizeFoundation.DiamandisalsoapproachedErikLindbergh,thegrandsonofCharlesLindbergh,andinvitedhimtosignonasanX-Prizespokesmanandtrustee.TheXPrizeFoundationestablishedofficesintheSt.LouisScienceCenterandonMay18,1996heldaformallaunchevent.DiamandiswasjoinedonthestageforthelaunchnotonlybyEricLindberghbutalsobyApollo11moonwalkerBuzzAldrinandbyNASAchiefDanGoldinwhodescribedtheX-Prizeasa"nobleventure"。