Kalshi Terminates Volume Incentive Program Amid Scrutiny Over Trading Patterns
Kalshi, a prediction-market operator, has ended its Volume Incentive Program nearly a year early due to growing scrutiny over trading patterns in its perpetual futures markets.
The program, which was originally set to run until October 1, 2027, will now terminate no earlier than October 13, according to a September 28 filing with the Commodity Futures Trading Commission (CFTC).
Kalshi has faced questions over repetitive trades around fixed dollar amounts, including roughly $5,500 in Ethereum perpetuals. However, the company attributes these repeated transactions to market makers placing fixed-size quotes that other traders repeatedly hit.
The Volume Incentive Program allowed traders to receive a share of a fixed reward pool based on their proportion of eligible volume. The program's termination marks a shift towards a more targeted approach, with Kalshi introducing a new Deposit and Trading Reward Incentive Program that gives the exchange more flexibility in how it spends money to attract and retain traders.