CryptoSlate
Kalshi is ending its Volume Incentive Program nearly a year early, with termination set for no earlier than Oct. 13 rather than its previously planned end date of Oct. 1, 2027. The move comes as the CFTC faces questions about trading patterns in Kalshi's crypto perpetuals, including repetitive trades around fixed amounts such as roughly $5,500 in Ethereum perpetuals. Kalshi says it is not under investigation and denies wash trading. Its filing does not connect the program's end to the scrutiny or explain the decision.
Why it matters
The old program distributed fixed reward pools according to traders' shares of eligible volume. Kalshi's new incentive framework instead allows time-limited promotions tied to deposits, trading, or both. Promotions can last three to 90 days and target users by factors such as account age, trading history, geography, and contract categories. Individual promotions can pay up to $2,500, with total rewards capped at $5,000 per person over the program's planned two-year life.
The new filing also says trades under inquiry for possible self-matching, wash trading, prearranged trading, or other prohibited practices would not qualify for rewards. Kalshi says its surveillance staff will apply heightened monitoring to incentive participants and can end their eligibility or pursue discipline. The filings allow the old and new programs to overlap; they do not formally describe the new framework as a replacement.
Market impact
The change comes amid strong reported activity, not an apparent shortage of headline volume. DeFiRate data put Kalshi's Sept. 27 record at $3.24 billion, with $15.66 billion in volume over the preceding seven days. Its share of tracked prediction-market volume was near 80%.
At the same time, Kalshi is in advanced discussions to raise about $1 billion at a roughly $40 billion valuation, Reuters reported. That would nearly double the $22 billion valuation from its May fundraising round. For investors, the key question is how much of the growth reflects durable demand versus activity encouraged by trading rewards.
Frequently asked questions
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When is Kalshi's Volume Incentive Program set to end?
The filing sets termination no earlier than Oct. 13, nearly a year before its previously planned end date of Oct. 1, 2027.
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How does Kalshi's new rewards framework differ from the old one?
The old program distributed fixed reward pools based on each trader's share of eligible volume. The new framework allows time-limited promotions tied to deposits, trading, or both.
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What limits apply to individual promotions and total rewards?
Promotions can last three to 90 days and pay up to $2,500 per participant. Total rewards are capped at $5,000 per person over the program's planned two-year life.
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What trading activity would be excluded from Kalshi rewards?
The new filing says transactions under inquiry for possible self-matching, wash trading, prearranged trading, or other prohibited practices would not qualify for promotional rewards.
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How do Kalshi's volume figures compare with its reported fundraising valuation?
DeFiRate put Kalshi's Sept. 27 volume at $3.24 billion and its seven-day total at $15.66 billion. Reuters reported talks for a roughly $1 billion raise at a $40 billion valuation, nearly double the $22 billion May valuation.
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