On the Points System of Various Prediction Markets
A good indicator to see whether a prediction market is aiming for long-term operations or is just coming in like Opinion to take transaction fees and run after issuing tokens is:
Whether this prediction market is using real money (USD) to subsidize liquidity providers.
Currently, only two are genuinely using USD from transaction fee income to subsidize liquidity providers.
1. Polymarket, before it started collecting transaction fees, used its funding to subsidize for a long time, and Poly itself does not have a clear points system, so even if it doesn't distribute airdrops, to put it bluntly, it doesn't owe any users. Although I have not understood some of Poly's confusing operations recently, in this regard, greatness speaks for itself.
2. Limitless, both before and after issuing tokens, has been using USDC to subsidize market makers, and for a period of time, the amount was particularly large. At one point, in the Crypto Hourly market, there was a week when a single market was subsidized by $2400 in one day. Moreover, its points system is not fraudulent; if there are points, there are tokens, and the tokens also pump, which counts as a good airdrop.
Interestingly, both of these are Western projects that are willing to use the cash they have to promote growth.
In contrast, other Chinese-led projects, especially the incredibly outrageous Opinion, after obtaining transaction fees, have not shown any behavior to reinvest in the market.
No matter how beautifully points and various bonuses are presented, it's not as convincing as using real money to provide subsidies. If you are indeed a long-term player.
#Polymarket #Limitless
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