Creator Markets
On Precog, market creators ask questions about the future and turn them into prediction markets. They earn a share of the profits when their market resolves, plus the reputational value of running a well-designed, engaging market.
When a market resolves:
- The winning outcome traders are paid first.
- Any money left over is the profit pool.
- That profit pool is split: 90% to LPs, 5% to the market creator, 5% to the protocol (which currently ALSO go to market creators through the creator boost program).
The key for creators is to design markets that attract trading, more trading means more potential leftover profit and therefore higher earnings. Multi-outcome markets often perform better, as they spread trader bets across more possibilities, increasing the chance that the winning outcome is underbet.
A. Profitable Creator
Question: Which L2 will have the most daily transactions on Dec 31, 2025? (Outcomes: Arbitrum, Base, Optimism, zkSync, StarkNet, Other.)
LP funds $1,000. The market gets active with heavy betting on Arbitrum and Optimism. Base wins with only 15% probability at close. Profit pool after paying Base traders: $800. Creator share (5%): $40 profit — no capital at risk.
B. Obvious Market - Lower Earnings
Question: Will Ethereum’s Shanghai upgrade happen before June 2023? Market quickly shifts to 99% “Yes” as date becomes certain. LPs take a small loss (under 10%), leaving almost no profit pool. Creator earns close to $0.
Why Creators Like This Model
No upfront capital required (you can still LP in your own market if you want to boost returns). Earnings scale with engagement — the more traders and liquidity, the more potential profit. Creative freedom to design markets on any topic allowed by Precog’s rules.