Polymarket faces backlash over resolving disputed $7 million Trump-Ukraine market

Polymarket, the starring decentralized crypto prediction platform, faces backlash aft resolving a politically charged marketplace that straight conflicts with real-world developments.

On March 25, Polymarket finalized a $7 cardinal marketplace that asked whether US President Donald Trump would unafraid a uncommon world minerals statement with Ukraine by the extremity of March.

Despite nary specified woody being confirmed, the level resolved the marketplace successful favour of the claim, causing a backlash among users.

The result raised superior concerns astir the integrity of its Oracle strategy and the risks of token-based governance.

What happened?

Available reports suggest that the flawed solution stemmed from the manipulation of Polymarket’s oracle partner, UMA Protocol.

Wu Blockchain reported that a azygous whale allegedly utilized 3 wallets to formed 5 cardinal UMA tokens—roughly 25% of the votes. This gave the idiosyncratic outsized power implicit the last decision.

UMA operates arsenic an optimistic oracle. It allows token holders to ballot connected disputed outcomes, and those with much tokens person greater voting power.

While this attack supports decentralization, it besides opens the doorway to manipulation—especially erstwhile elector turnout is low. This means it wouldn’t instrumentality overmuch superior to plaything results, chiefly erstwhile the oracle governs larger liquidity pools.

0xngmi, DefiLlama’s pseudonymous founder, highlighted this risk, noting that 51% of UMA’s marketplace headdress stands astatine $63 million, which is dwarfed by Polymarket’s $120 cardinal successful full worth locked.

According to 0xngmi, this imbalance exposes the strategy to risk, arsenic a comparatively tiny involvement successful UMA tin power outcomes affecting overmuch much important sums.

Polymarket and UMA response

Polymarket acknowledged the contented and described the lawsuit arsenic “unprecedented.”

The level said its interior teams and UMA person been moving astir the timepiece to analyse and instrumentality safeguards.

A spokesperson for the level stated:

“This is not a portion of the aboriginal we privation to build: we volition physique up systems, monitoring, and much to marque definite this doesn’t repetition itself.”

Despite calls for refunds, Polymarket clarified that the marketplace was resolved according to protocol, and users would not beryllium reimbursed.

UMA echoed Polymarket’s stance and confirmed some teams are reviewing the lawsuit closely. They promised aboriginal improvements to support marketplace integrity and rebuild idiosyncratic trust.

The level added:

“We are moving with Polymarket to amended the idiosyncratic acquisition for some oracle and marketplace participants.”

The station Polymarket faces backlash implicit resolving disputed $7 cardinal Trump-Ukraine market appeared archetypal connected CryptoSlate.