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The Missing Layer in AI-Resolved Prediction Markets

AI judges could fix prediction markets, but only if their decisions are reproducible.
The Missing Layer in AI-Resolved Prediction Markets
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Last week, a16z published a proposal for using LLMs as prediction market judges. 

The pitch is to lock a specific model and prompt into the blockchain at a market's contract creation, let traders inspect the resolution's nuance before betting, then run it at resolution. The goal here is to eliminate human bias and problems that can arise from token-based dispute resolution.

There's just one problem the proposal glosses over: LLMs aren't designed to give the same answer twice.

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David Christopher

Written by David Christopher

613 Articles View all      

David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.

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