Learn Concept: Polymarket’s Impact on US Election Prediction Markets

By: Eliza Bennet

Polymarket, a decentralized prediction market platform operating on the Polygon network, has gained prominence by allowing users to engage in betting on the outcomes of US political elections. This platform's model deviates from traditional US frameworks, where election betting is predominantly prohibited. Polymarket's market for the 2024 US Presidential Election has seen over $364 million wagered, reflecting a growing trend of political engagement through prediction markets.

Despite regulatory challenges, with the US Commodity Futures Trading Commission (CFTC) aiming to shut down such platforms, Polymarket has established itself as a critical player. Users connect EVM-compatible wallets such as MetaMask, using USDC, to participate in binary outcome markets.

Market Structure and Execution

Polymarket utilizes a continuous double auction model, where prices reflect the probability of event outcomes. For detailed participation examples, consider betting on outcomes like the 2024 US Presidential Election.

Technical Infrastructure & Reward Mechanism

Polymarket deploys Polygon for scalability and lowered transaction costs, using UMA Optimistic Oracle for market resolution. The platform encourages liquidity through rewards and order scoring functions based on market participation. Weekly rewards are distributed directly to users.

Features and Advantages

With real-time trading, no native token requirement, and self-custodial wallets, Polymarket offers transparency and scalability. These features ensure efficient trading and fair market resolutions, enhancing its position as a robust prediction market platform. For more details, you can visit Polymarket.