Polymarket Introduces 4% Annualized Yield for Long-Term Market Positions

Polymarket, the decentralized prediction platform known for markets on politics and global events, has rolled out a new incentive program designed to encourage traders to hold positions over the long term.

The exchange announced that select markets will now earn a 4% annualized yield, paid out daily, with funding coming directly from the Polymarket Treasury.

How the incentive works

The new program applies to positions in several political and geopolitical markets, including the 2028 U.S. presidential election, the 2026 midterms, and leadership outcomes in countries such as Russia, China, Turkey, Israel, and Ukraine.

These markets tend to remain open for years, making them more prone to short-term speculation or sudden swings. By introducing a steady yield, Polymarket aims to keep pricing more stable and reflective of long-term probabilities.

Rewards are calculated based on the value of a trader’s “Yes” and “No” shares, using the most recent mid-price as a reference. An hourly random sampling of accounts determines payouts, which accrue automatically.

At the 4% annualized rate, a $20,400 position, for example, would earn roughly $0.09 every hour. While the exchange has highlighted this 4% figure, it also noted that the rate is variable and could be adjusted or capped depending on market conditions.

Why Polymarket is adding yield

The idea of offering yield to prediction market participants is not entirely new, but Polymarket is among the first platforms to implement it on a large scale.

According to the team, the incentive is designed to “encourage users to stay in markets longer,” which they argue leads to more accurate crowd-sourced forecasts.

The move follows lessons learned from the 2024 U.S. elections, when Polymarket’s markets gained mainstream attention for accurately indicating the winner ahead of official results.

By focusing on high-profile and liquid markets, the exchange hopes the rewards system will reduce volatility caused by last-minute trading surges and discourage potential manipulation.

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