Polymarket may be preparing to bring dispute resolution for its prediction markets in-house with the upcoming POLY token, potentially ending UMA’s role as the platform’s oracle.
Although details on POLY’s utility and tokenomics remain scarce, the move appears aimed at addressing long-standing concerns over UMA’s “optimistic” oracle. That system, where UMA token holders vote on market outcomes, has faced criticism for whale-led manipulation and misaligned incentives. Large holders can disproportionately influence results, while smaller participants are incentivized to follow the majority, sometimes at the expense of accuracy.
POLY could function alongside Polymarket’s USDC wagering engine, separating governance from betting. By doing so, the platform may make the cost of manipulation prohibitively high while ensuring rewards are tied to accuracy. If successful, POLY could redefine how decentralized prediction markets align incentives with truth rather than mere consensus.
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