Co-founder of Ethereum Vitalik Buterin said prediction market platforms are turning into casino-like services rather than producing durable informational value.

Assessment

Buterin argued that many prediction platforms have evolved into short-term, dopamine-driven betting venues, rather than mechanisms producing reliable long-term signals.

«"casino" and "corporate slop"»

He noted growth on these platforms is sustained primarily by inexperienced retail participants instead of genuine demand for high-quality information.

Proposed shift

His suggested remedy is reorienting markets toward risk hedging, where contracts function as insurance against political or macroeconomic measurable outcomes.

Using prediction markets for hedging would, in his view, prioritize stability and provide clearer incentives for information discovery and compensation.

Implications

Shifting focus from speculative entertainment to structured risk transfer would likely change product design, market governance, and user onboarding priorities.

Buterin's proposal does not prescribe specific protocols, yet it emphasizes aligning financial incentives to reward truthful, robust forecasting over short-term trading.

The core message is succinct: reducing gamified elements on platforms could improve resilience and usefulness for stakeholders seeking risk management tools.