To build a successful prediction market, you must ensure markets are resolved clearly and without bias Most prediction markets use one of two approaches: • Manual resolution by team members • Token holders voting on the outcome These methods work best for deterministic markets, where outcomes are objective. Eg which football team will win a match or whether BTC will exceed $100k But they become less reliable in non-deterministic markets with subjective outcomes, such as whether Ronaldo will cry. There have been instances where a few large token holders sway outcomes in their favor No trader wants to use a platform where outcomes depend on whale votes or where rules change at the last minute. Some prediction markets are taking a different approach by using AI agents to resolve markets. @xomarket, for instance, uses MODRA, an AI resolution oracle Instead of letting users who may have a stake in a market decide the outcome, the AI agent evaluates it based on the predefined market rules This is a unique example of how AI can be applied in crypto.
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