Polymarket Rolls Out 4% Annual Rewards for Long-Term Market Positions

Competition in the prediction market space is intensifying, and Polymarket is responding with a new initiative designed to reinforce the stability of its markets. The platform has rolled out a program that offers users up to 4% annualized returns for holding eligible open positions in selected markets. With this, Polymarket now stands out as the prediction app providing the most competitive holding rewards among its peers.

Polymarket’s Holding Reward Program

Polymarket, a leading prediction platform, explained that rewards are based on the value of positions in selected contracts. The goal is to ensure accuracy in pricing, particularly in contracts that stretch over longer periods. The company also revealed that later this year it will release an updated reward and resolution system, with a simplified one-click process for users to transfer their holdings.

The reward is paid daily, though the 4% figure is presented as an annualized rate. According to Polymarket, the value of user positions is sampled once per hour on a random basis, and those samples form the basis for the daily payout.

Eligible positions are determined by the shares users hold and the mid-price of the outcomes at the time of evaluation. For example, the value of “Yes” and “No” shares is multiplied by their most recent mid-prices to determine the worth of a user’s position. That figure is then used to calculate the daily return.

At present, the program applies the same annualized rate to all eligible markets. Polymarket has indicated that this level could change over time and that overall payouts may be capped if needed. The company confirmed that the initiative is financed directly from the Polymarket Treasury.

The company has identified a group of markets for the program, concentrating on contracts linked to major political and global developments. Among these are the 2028 U.S. presidential election winner, presidential nomination races, and the Russia–Ukraine ceasefire before 2027, among others. The selection focuses on high-profile events that attract significant trading activity and require consistent pricing over time.

Trading Performance and Regulatory Clearance

While Polymarket is rolling out this incentive to strengthen its position, rival platform Kalshi has been leading in terms of activity. Over the past three weeks, Kalshi has recorded larger trading volumes, with about $728 million processed in a recent week. During the same period, Polymarket saw approximately $456 million.

Open interest figures also show Kalshi in the lead. As of September 23, Kalshi’s open positions were valued at more than $182 million, while Polymarket’s stood at around $160 million, according to data from Dune Analytics. These numbers highlight the scale at which Kalshi has been operating, even as Polymarket seeks to boost its competitiveness with the reward program.

Meanwhile, earlier this month, Polymarket received a No-Action Letter from the U.S. Commodities Futures Trading Commission (CFTC), allowing the platform to operate legally in the United States for event-based contracts. This regulatory clearance represents an important milestone for the company and sets the stage for expanding its U.S. operations.