Kalshi moves to end volume rewards program nearly a year early
Kalshi has filed notice with the Commodity Futures Trading Commission to end its Volume Incentive Program as early as Oct. 13, 2026, cutting the rewards initiative short following allegations of wash trading.
Kalshi is shutting down its Volume Incentive Program, which rewarded traders with portions of fixed prize pools based on trading volume, according to a notice filed with the Commodity Futures Trading Commission. The filing advances the termination date from Oct. 1, 2027, to no earlier than Oct. 13, 2026. Kalshi provided no specific reason in the notice, citing an exchange rule that permits it to cancel incentive initiatives at its sole discretion.[1][2]
The early termination comes after an analyst known on X as Beni reported that repeating trades of exactly $5,500 constituted roughly half of the daily volume in Kalshi's ether perpetual market on several occasions. The Wall Street Journal reported that the CFTC was scrutinizing the transactions—which generated more than $5 billion in ether perpetual volume over a month—prior to deciding whether to launch an enforcement investigation.[1]
Kalshi denied wash trading in a Sept. 22 blog post, stating that the identical transaction sizes occurred because faster traders repeatedly hit fixed-size quotes posted by a market maker, and noted that its perpetual market maker programs compensate resting liquidity rather than trading volume. A company spokesperson told CoinDesk that the CFTC had not contacted the exchange. The move also follows an August CFTC advisory warning that volume incentives can prompt trading solely to meet volume thresholds, and the filing did not state whether Kalshi intends to replace the program.[1]
Key facts
- Kalshi filed notice with the CFTC to terminate its Volume Incentive Program, which gave traders a share of prize pools based on trading volume.
- The program's conclusion was moved up nearly a year early, from Oct. 1, 2027, to no earlier than Oct. 13, 2026.
- The filing followed claims by an analyst known as Beni that $5,500 trades represented about half the volume in Kalshi's ether perpetual on multiple days.
- The Wall Street Journal reported that the CFTC was reviewing the trades, which totaled more than $5 billion in monthly volume, before deciding on an enforcement probe.
- Kalshi denied wash trading, attributing the repeated sizes to market maker quotes, and said the CFTC had not contacted the exchange.
- CFTC staff issued an advisory in August warning that volume-based rewards could encourage trading solely to hit volume targets.
Sources · 2 sources
- UN
UnchainedArticle ·
Kalshi Ends Its Trader Volume Rewards a Year Early Amid Wash Trading Allegations Kalshi is shutting down its Volume Incentive Program , a rewards scheme that paid traders a cut of fixed prize pools based on how much they traded, according to a notice the prediction market filed with the Commodity Futures Trading Commission on Monday. The termination takes effect no earlier than Oct. 13, 2026 . A redlined copy of the program’s terms in the filing shows the end date moved up from Oct. 1, 2027 . The notice gives no reason, citing a Kalshi rule that lets the exchange end incentive programs “as the Exchange determines in its sole discretion.” How the Program Worked Kalshi first filed the program in February 2023, saying it would “incentivize trading and increase volume and enhance pricing efficiency” on the exchange. Under its current terms, each eligible market carried a fixed Volume Reward , split among traders in proportion to their share of eligible volume on the central limit order book. Members with market maker agreements were excluded. Event contract trades counted only if priced between 3 cents and 97 cents , with rewards capped at half a cent per contract . That price band did not apply to perpetual futures , the filing says. Wash Trading Allegations The notice lands a week after an analyst known on X as Beni alleged that trades of exactly $5,500 made up about half of the volume in Kalshi’s ether perpetual on several days. The Wall Street Journal then reported that the CFTC was examining the trades before deciding whether to open an enforcement investigation, saying the repeating size drove more than $5 billion of ether perp volume in a month. Kalshi has denied wash trading. In a Sept. 22 blog post , it said a market maker posting fixed-size quotes that faster traders kept hitting explained the repeated sizes, and that its perpetuals market maker programs pay for resting liquidity and “do not reward volume traded.” A Kalshi spokesperson told CoinDesk the company had not been contacted by the CFTC. Regulator’s August Warning In August, CFTC staff issued an advisory warning that volume-based rewards with steep tiers or threshold bonuses “can encourage participants to trade solely to reach volume targets.” Staff asked exchanges to review incentive programs already on file and submit any amendments by Sept. 14 . Kalshi’s filing does not say whether it plans to replace the program. Related Listen: Why Kalshi’s Timeline Fight Put Its ETH Perp Volume Under a Microscope: Uneasy Money The post Kalshi Ends Its Trader Volume Rewards a Year Early Amid Wash Trading Allegations appeared first on Unchained .
Open source - LS
Laura Shin@laurashinPost on X ·
Kalshi is ending its Volume Incentive Program, which paid traders based on their share of trading volume. A CFTC filing moves the end date to Oct. 13, nearly a year ahead of schedule. https://t.co/ejfxzvU0Bf
Open source