Polymarket Under Fire Over UMA Ruling in Zelenskyy Suit Market
Polymarket is facing backlash after a contentious decision on a market predicting whether Ukrainian President Volodymyr Zelenskyy wore a suit. The controversy has exposed flaws in the platform’s decentralized dispute resolution, frustrating many users.
At the heart of the issue is UMA, the decentralized oracle protocol responsible for resolving disputes on Polymarket through token-holder votes. Critics argue that UMA’s system allows large token holders to dominate outcomes, undermining true decentralization.
Zelenskyy Suit Market Sparks Outrage
The dispute arose from a Polymarket question on whether Zelenskyy appeared in a suit before July. Despite major news outlets like the BBC and New York Post reporting he did, UMA’s ruling sided with “No,” disappointing many bettors in a market valued at nearly $200 million.
Trader Criticizes UMA’s Incentive Structure
Top trader RememberAmalek highlighted that UMA’s voting system pressures participants to align with the expected majority to avoid losing staked tokens. This incentivizes strategic voting over factual judgment.
Known for significant wins on Polymarket, including over $1 million in profits and a famous bet on a New York mayoral primary upset, RememberAmalek calls UMA’s mechanism “flawed and easily manipulated.”
Whale Dominance Raises Concerns
UMA penalizes voters who dissent from the final outcome by slashing their stakes, encouraging conformity. Large token holders—“whales”—can sway votes significantly. Data from IntotheBlock shows 95% of UMA tokens are held by big investors, far more concentrated than in other crypto projects.
Betting on Outcomes, Not Truth
RememberAmalek admits he now bets based on how UMA will rule, not on the actual event, highlighting a fundamental weakness in the system.
Call for Platform-Controlled Resolution
Despite opposing centralized power, RememberAmalek suggests Polymarket should manage dispute resolution directly to restore user trust and fairness.
He summed it up simply: “This isn’t decentralized.”
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