UMA Restricts Resolution Proposals to Whitelisted Entities on Polymarket

The UMA (Universal Market Access) protocol has announced an oracle update to limit the submission of resolution proposals on Polymarket to a pre-approved, or "whitelisted," group of entities, as confirmed via UMA’s official governance channels [1]. This change marks a shift in how UMA manages market resolution, aiming to reduce ambiguity and adversarial claims that can complicate outcomes in high-stakes prediction markets. The update is positioned as a direct response to historical issues on Polymarket, where ambiguous or contentious proposals occasionally led to disputes [2].

According to UMA’s governance statements, the move is intended to improve clarity and reduce the likelihood of disputes, thereby enhancing the stability of markets that rely on the Optimistic Oracle mechanism [1]. The protocol will now act as a gatekeeper, controlling which parties can submit resolution proposals and ensuring that only those deemed credible or aligned with market integrity participate in the process [2]. While the vast majority—approximately 98%—of Polymarket markets have settled without issue, UMA emphasized that tighter controls are necessary for more complex cases to maintain system reliability [3].

The impact of this change will extend to both UMA’s governance participants and Polymarket traders, with the expectation that market resolution will become more streamlined and predictable [2]. Analysts suggest that the changes align with broader trends in the industry, where tighter assertion controls have been shown to reduce disputes and improve market integrity [3]. By limiting who can propose resolutions, UMA is reinforcing a system that prioritizes clarity and minimizes human-language ambiguity, which has historically led to contentious outcomes [4].

The decision reflects a strategic shift in UMA’s governance approach, favoring rule-based dispute prevention over open participation. Experts believe that this could lead to more accurate market resolutions, as the focus moves toward pre-defined criteria and vetted proposal submissions [2]. The move also aligns with UMA’s long-term objective of supporting stable and efficient prediction markets, particularly in scenarios where the stakes are high and the consequences of misresolution are significant.

Source:

[1] UMA Proposes Oracle Update to Limit Resolution Proposals on Polymarket – https://coinmarketcap.com/community/articles/689b0265be4ae366a78a07ff/