[The Evolution of Economic Models in Prediction Markets: From Transaction Fees to Behavioral Mining] Traditional prediction markets have a very singular revenue model: they charge transaction fees (0.5%-2%). Polymarket and Kalshi follow this logic. The problem is that this model cannot sustain liquidity in a Bear Market or in niche markets.
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[The Evolution of Economic Models in Prediction Markets: From Transaction Fees to Behavioral Mining] Traditional prediction markets have a very singular revenue model: they charge transaction fees (0.5%-2%). Polymarket and Kalshi follow this logic. The problem is that this model cannot sustain liquidity in a Bear Market or in niche markets.