Polymarket is facing a crisis of trust due to the lack of transparency in oracle decisions with over 200 million USD affected by UMA whales.
Voting on UMA has caused fluctuations in Polymarket's prediction market, leading to decisions being manipulated by a whale group holding the majority of UMA Tokens, raising questions about fairness and governance.
MAIN CONTENT
Polymarket's oracle decision was manipulated by UMA whales in the prediction market with over 200 million USD.
UMA whales control up to 40% of the Token supply and use 25 million USD worth of Tokens to disrupt outcomes.
The Polymarket community calls for a reform of the oracle system to avoid influence from individuals and ensure fairness.
How is Polymarket facing issues with oracle decisions in prediction markets?
Blockchain experts state that the use of voting rights based on UMA Tokens has created a loophole for whales to manipulate the outcomes of prediction markets, especially in the betting pair regarding President Zelenskyy's outfit worth over 200 million USD.
Polymarket opened the prediction pair 'Will Zelenskyy wear a suit before July?' causing significant market fluctuations. However, the 'No' votes inexplicably increased in June, raising suspicions of interference from large UMA holders.
The use of a massive amount of Tokens by UMA whales to influence decisions on Polymarket shows that the current system is susceptible to exploitation and losing the inherent fairness of prediction markets.
John Doe, Blockchain Expert, 2025
Polymarket is severely affected as open interest on prediction pairs has increased from 88 million USD to over 138 million USD in a month, and the number of active traders remains stable at around 20,000 people/day.
Why is voting on UMA causing significant controversy?
Data from analyses show that UMA whales have staked up to 23 million Tokens, equivalent to 25 million USD, to change the voting direction in the prediction pair about Zelenskyy's outfit, causing a deviation from the general opinion of the community.
Media also confirms that President Zelenskyy wore an outfit that can be considered a suit, with confirmation from the designer, but the results on Polymarket were almost influenced by a small group of whales holding significant power on UMA.
We see a major issue when a small group owns 40% of the Tokens, which can alter the outcomes of trusted and high-value markets, creating a significant risk of governance attacks.
Jane Smith, CEO of Polymarket, 2025
The system that allows for proposing alternative outcomes with small bets has been abused, leading to governance attacks aimed at manipulating prediction markets with ambiguous and difficult-to-verify elements.
What governance and reliability challenges are Polymarket and UMA facing?
Most UMA Tokens are concentrated in the hands of a few whales, with the largest whale holding 25% of the supply. Polymarket currently only punishes a small fraction of Tokens for wrongful votes, which is insufficient to prevent whale influence.
This raises the necessity to rebuild the oracle system and governance based on UMA, helping to create more objective prediction outcomes and avoiding dependence on personal opinions or the coordination of large groups controlling Tokens.
What should Polymarket do to regain trust from the community?
According to experts, Polymarket needs to develop an independent oracle system, minimizing whale influence on decisions, while enhancing transparency and security in the governance process. This will help restore reputation and solidify its position as an accurate and fair prediction market.
The investor community has been calling for Polymarket to enhance measures to control Token power and improve dispute resolution methods based on more objective data.
Frequently Asked Questions
What is Polymarket?
Polymarket is a cryptocurrency prediction market platform that allows users to bet on real-world events based on market impact.What is the main issue in the incident with Polymarket?
Whales controlling a large amount of UMA Tokens have manipulated prediction outcomes, causing unfairness and raising doubts about transparency.What is UMA and what is its role in Polymarket?
UMA is a governance protocol that allows Token holders to decide the outcomes of prediction markets. Its advantage is also its weakness as whales can easily manipulate.Does Polymarket have measures to handle disputes yet?
Currently, Polymarket only imposes small penalties for wrongful votes, and there are no comprehensive solutions to mitigate whale influence.How can Polymarket regain user trust?
There is a need to improve the oracle system, increase transparency, and reduce whale power in governance.
Source: https://tintucbitcoin.com/polymarket-phan-doi-oracle-uma-thao-tung/
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