Polymarket has begun live testing for Protocol V2, a broad rebuild of the smart-contract system that powers its prediction markets. The update is intended to replace an architecture that expanded over time with a more unified framework covering markets, positions, collateral and settlement.
The testing phase centers on a limited set of canary markets and is scheduled to continue through October 30. Under the current timeline, November 2 is the target date for new markets to begin shifting to the updated system, while older positions will continue settling on the infrastructure where they were originally created.
A deeper protocol overhaul
The changes in Protocol V2 go beyond a front-end refresh. Polymarket is rebuilding core market plumbing so different kinds of contracts can operate through a shared exchange structure instead of a more fragmented collection of contracts and extensions.
According to the source article, the new design is meant to simplify how key parts of the platform interact. That includes the relationship between market creation, position handling, collateral management and the final settlement process.
pUSD becomes the standard collateral
One of the clearest changes in V2 is the move to pUSD as the standardized collateral asset for new markets. Rather than relying on the older setup, Polymarket is shifting toward a single collateral framework for the updated system.
The article also says positions are being consolidated under a shared token model, while routing and oracle components are being reorganized. The goal is to make it easier for the platform to support additional market types through the same base infrastructure.
Canary rollout through late October
Polymarket is not migrating the entire platform at once. Instead, it is using a small group of canary markets to test the V2 contracts in live conditions before a broader rollout.
That canary phase is expected to run through October 30. If the schedule holds, November 2 is the planned point for new markets to move onto the revised architecture. The timeline is described as tentative rather than final.
Legacy positions stay on their original rails
A key part of the rollout is that existing markets are not being forced into the new system midstream. Positions already opened under the previous infrastructure will continue to settle there rather than being migrated while they are still active.
That phased approach is aimed at reducing the risks that can come with moving open funds and live positions between contract systems. In practical terms, users may see only modest immediate differences, even as the mechanics underneath the platform change substantially.
Why the upgrade matters
The overhaul comes as prediction markets draw wider attention across elections, macro events, technology, sports and breaking news. As trading volume and market variety increase, systems built for a smaller product can become limiting.
In that context, Protocol V2 appears intended to give Polymarket a more flexible base for creating and settling a broader range of markets. The next confirmed milestone is the end of canary testing on October 30, followed by the currently targeted November 2 start for moving new markets to the updated system.
Source: bitcoinist.com