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Prediction Markets and Beyond

a16z Podcast

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Payout Feedback Loops in Prediction Markets

This chapter emphasizes the importance of swift payouts in prediction markets to enhance trust and engagement among participants. It examines the contrast between immediate outcomes in sports betting and the delayed resolutions typical of prediction markets, while proposing design mechanisms to improve flexibility and accessibility. The discussion also explores how these markets can inform critical corporate decisions, particularly through techniques used in decentralized governance and data aggregation.

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