Should a market be halted when a major discussion on resolution criteria takes place?
Should a market be halted when a major discussion on resolution criteria takes place?
41
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Yes, trading should be halted until the discussion is resolved.
No, trading should continue as normal.
Trading should be halted only if and before the market creator weighs in.
Trading should continue, but with a disclaimer in the description that the resolution criteria may change based on the discussion.
Trading should continue, but market creators should post summary updates of the discussion at regular intervals.
Pause new bets only, allowing current positions to be closed, but no new bets placed until the discussion concludes.
Continue trading as normal, but institute a "cooling off" period after the discussion where large bets over a certain amount would be barred after reopening of market.
Others (Please clarify in comments)

Inspired by @Joshua's comment on the Discord server. In case a major discussion emerges around clarifying or changing the resolution criteria before the market is resolved, should the market be halted?

Potential Pros:

  • Fairness - Traders would not feel pressured to closely monitor comments from the market creator for clues about potential changes to resolution criteria.

  • Transparency - A pause prevents bets from being placed under uncertain or evolving resolution terms. All traders have equal access to information before trading resumes.

  • Avoid unintended influence - Large bets or shifts in market sentiment may be driven more by the discussion atmosphere than the underlying topics being discussed.

Potential Cons:

  • Liquidity - An extended pause reduces market liquidity and betting opportunities for all traders. This could deter future participation.

  • Precedent - Frequent or arbitrary pauses may undermine the integrity and predictability of market operations over time.

  • Criteria in limbo - Even with a pause, resolution criteria discussions may continue without consensus, leaving criteria uncertain on resume.

  • Loss of insight - Ongoing price fluctuations provide valuable market-based feedback that could inform the criteria discussion. A pause loses this input.

While some of the proposed options may require adjustments to the trading platform, they have been included for consideration as they could offer potential solutions to the raised issues.

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1y

I'm not sure, it probably depends on how significant the dispute is

1y

This is a good write-up, I appreciate it!

1y

@Joshua You're welcome! I am also curious about how the userbase receives the idea in general myself.

Not that I am a prolific market creator, but I've seen enough heated discussions to want to mitigate any potential disagreements.

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