Incentive Model

The incentive model defines how participants are encouraged to contribute to the prediction market ecosystem. By aligning incentives across different roles, the protocol encourages active participation, accurate forecasting, and healthy market activity.

Participants who interact with markets help improve price discovery, market liquidity, and overall ecosystem growth.

Traders

Traders play a central role in prediction markets by expressing expectations through buying and selling outcomes.

Traders contribute to the ecosystem by

• identifying mispriced outcomes
• reacting to new information
• improving price discovery
• increasing market activity

Active trading helps the market continuously refine probability estimates.

Market Participants

Prediction markets benefit from broad participation across different users.

Participant activity may include

• exploring multiple markets
• engaging with different outcomes
• contributing to trading volume
• interacting with market signals

Diverse participation improves the accuracy and robustness of market forecasts.

Market Efficiency

The incentive model is designed to encourage behaviors that strengthen market efficiency.

Healthy market conditions often include

• active trading activity
• balanced participation across outcomes
• consistent market engagement
• dynamic price discovery

When participants interact with markets regularly, probability signals become stronger and more reliable.

Ecosystem Growth

Incentives also support the long term growth of the ecosystem.

Active participants help

• strengthen prediction markets
• improve information aggregation
• expand community participation
• support ecosystem development

As participation grows, the forecasting power of the market improves.