Polymarket starts paying out 4% rewards for holding long-term positions

Polymarket announced a new program to stabilize some of its long-running markets, paying out up to 4% annualized for selected positions. The platform pays out the highest rewards among prediction market apps. 

Polymarket has added another incentive to ensure the stability of some long-term markets. A 4% annualized interest rate will accrue to selected positions for long-term holding. This approach will assure clearer crowdsourcing and more stability as Polymarket traders will be incentivized to remain in those markets for as long as possible. 

JUST IN: Polymarket now pays out the highest interest rates of any prediction market.

4% annualized rewards, paid out daily on open positions in select long-term polymarkets.

— Polymarket (@Polymarket) September 24, 2025

The positions will be checked hourly for changes, receiving returns based on a 4% annualized rate. Polymarket gave an example with a total position value of $20,400, which would generate $0.09 in returns every hour.

Polymarket rewards incentivize stability for top political predictions

To keep long-term prices as accurate as possible, Polymarket has selected a list, mostly linked to election results and current events. Those markets have shown significant volumes and fluctuations, with traders often actively shifting their positions. 

The eligible markets include the prediction pair for the US Presidential election winner in 2028, midterm results, nominations for presidents, and prediction markets on the war in Ukraine, among others. The pairs listed are among the most contested and liquid, inviting whales and speculation. 

Polymarket selected those pairs based on its experience with the 2024 elections, where the app came into the spotlight for pointing to the winner even before the official data was gathered. 

The incentive for holding may also smooth out the price curve, avoiding interactions and manipulation at the last moment. Polymarket is now part of the news cycle, as current events and news-based pairs are some of the most active markets. 

The platform even gained a mention on South Park, showing its cultural impact. On Polymarket, there are also a series of small markets for the exact content and mentions of the show’s latest episode.

Polymarket activity reaches 2025 peak

Polymarket activity has been growing gradually and more organically, with smaller bets and an increase in active wallets. The platform regained transaction levels not seen since January. 

In the past few months, new wallets that never participated in the 2024 election markets became more dominant, showing an inflow of new users. 

The platform locks in $156.7M in its vaults, again expanding slowly over the past nine months. The site received a green light to return to the US market, as Cryptopolitan reported in September. 

The platform may continue on track to further expansion, boosted by user-proposed markets and a highly active period of current news and events. As with other successful on-chain apps, Polymarket has invited competition on other chains, though for now, the platform remains the leader with the biggest influence on social media.

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