In bonded resolution, prediction markets require individuals who submit outcomes to put up a bond—usually in tokens or platform credits. This bond serves as a guarantee of honesty. If the reported outcome is verified as correct, the bond is released back to the reporter. If the report is incorrect, misleading, or challenged successfully, the bond is lost or partially slashed.
This mechanism aligns incentives by discouraging careless or malicious reporting. Because reporters risk losing their bond, they only submit outcomes they are confident are accurate. Bonded resolution is especially important in decentralized environments, where no central authority oversees outcome verification. It creates a self-enforcing system that maintains reliability and fairness.
Over time, bonded resolution produces prediction markets data that reflects strong incentives for accurate reporting. Disputes, bond sizes, and resolution times all help analysts understand how well the system performs and whether users trust the reporting process.
Bonded resolution makes prediction markets more trustworthy. It ensures that outcome reporting is backed by economic incentives, reducing errors and improving the quality of prediction markets data.
They use bonded resolution to discourage false reporting and protect users from incorrect settlements. Reporters must risk their own funds, making dishonesty costly. This reduces the likelihood of inaccurate outcomes and strengthens trust in the platform. The system also supports decentralization by relying on incentives rather than central oversight, leading to cleaner prediction markets data.
The bond forces reporters to verify information carefully before submitting it. If they provide incorrect data, their bond may be forfeited. This financial risk ensures that only well-supported outcomes are reported. The result is more accurate market settlements, fewer disputes, and more reliable prediction markets data for analysts and developers.
Analysts can study bond sizes, dispute frequency, and forfeiture rates to assess how reliable the reporting system is. Frequent bond losses may signal unclear criteria or bad actor activity. Smooth bonding patterns with few disputes indicate strong trust and effective market design. These insights help improve forecasting infrastructure and strengthen prediction markets data quality.
Myriad, a decentralized prediction market, requires reporters to post a bond when submitting an event outcome. If another user challenges the report and proves it incorrect, the reporter’s bond is forfeited and redistributed. This bonded resolution system ensures that only accurate, well-supported outcomes are submitted to the market.
Bonded resolution relies on transparent historical records of reports, disputes, and outcomes. FinFeed's Prediction Markets API provides structured prediction markets data—including timestamps, resolutions, and challenge patterns—that developers can use to analyze bonding behavior and improve resolution workflows.
