Monetization Business Models of a Crypto Prediction Market Platform
The most successful cryptocurrency prediction market platforms deliver stable and steady income while remaining significantly lower in cost than traditional voting or polling services. Here are proven strategies that founders and investors use to monetize their platforms.
- Trading fees on market positions
The revenue model involves a low commission of 0.5% to 2% per payout and redemption of stocks. This model works since users are charged extra only when they make a profit, hence they are not opposed to it.
- Market creation and listing fees
The platforms charge a one-time or subscription fee in native tokens and/or stablecoins to launch new markets and increase visibility. Some projects are tiered, offering free creation with no visibility, as well as options to pay for creation, promotion, and liquidity.
- Liquidity provider fees and platform share
Contribution of funds by LPs to markets, either in AMM pools or order books, results in the protocol sharing trade and settlement fees between LPs and the treasury. Their technologically advanced platforms mine liquidity, which is sustained by profits derived from their own protocol.
- Staking, yield, and escrow revenue
Token platforms usually offer staking/escrow voting, in which the protocol’s proceeds are divided among stakers. Escrow for major individual markets-the corporate or institutional bets-involves additional commission fees. Large individual markets involve additional commissions; these would be corporate or institutional bets.