AI & Architecture

Oracle & Settlement Roadmap

From an operator-signed result to an on-chain resolution market.

v1.0Last updated: 2026-10-22·2 min readSource

Settlement is the single most important trust boundary in a prediction market. Today it is a signed transaction from the operator. The roadmap replaces that with a market for the truth.

Phase 1 · Operator as oracle (live)

  • owner calls settle(poolId, winningOption, evidenceHash) after endTime
  • The evidence hash is written to storage and emitted in PoolSettled
  • The owner cannot bet from its own address; it can still resolve against users (documented)
  • If the operator disappears for 30 days, anyone voids the market and refunds 100%

Phase 2 · Bonded resolution with a dispute window

  • Proposer posts a bond and an outcome; a challenge window opens
  • Challengers post a matching bond; escalation goes to an arbitrator (UMA-style optimistic oracle or a Kleros court)
  • Wrong proposers lose the bond, which is paid to the challenger
  • The 30-day escape hatch shortens, because resolution is now contested rather than trusted

Phase 3 · On-chain resolution market

The final form removes the operator from the critical path entirely: the resolution itself becomes a prediction market settled by a decentralised oracle, with the same evidence-hash discipline applied to every layer. At that point the sybil residual (F-01) disappears, because there is no privileged address left to exploit.

What must not be rushed

Each phase adds a new attack surface (bond griefing, arbitrator bias, oracle latency). Shipping an optimistic oracle before the pool accounting is proven is how protocols lose money — the current phase is deliberately boring.

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