Kalshi is shutting down its Volume Incentive Program, a trader rewards scheme that distributed pieces of fixed prize pools based on how much participants traded. According to a notice the prediction market filed with the U.S. Commodity Futures Trading Commission on Monday, the termination will take effect no earlier than Oct. 13, 2026.
A redlined copy of the filing shows the end date was moved up from Oct. 1, 2027. The notice does not give a reason. It cites a Kalshi rule that allows the exchange to end incentive programs at its sole discretion.
How the program worked
Kalshi first filed the program in February 2023, saying it was designed to encourage trading, increase volume, and improve pricing efficiency on the exchange.
Under the current terms, each eligible market carried a fixed Volume Reward. That reward was split among traders based on their share of eligible volume on the central limit order book. Members operating under market maker agreements were excluded.
For event contracts, trades counted only if they were priced between $0.03 and $0.97, and rewards were capped at $0.005 per contract. The filing says that price band did not apply to perpetual futures.
Filing follows wash trading allegations
The notice came a week after an analyst known as Beni on X alleged that trades of exactly $5,500 made up about half of the volume in Kalshi’s ether perpetual market on several days.
The Wall Street Journal then reported that the CFTC was examining those trades before deciding whether to open an enforcement investigation. According to that report, the repeating trade size generated more than $5 billion in ether perpetual volume over one month.
Kalshi has denied wash trading. In a Sept. 22 blog post, the company said the repeated trade sizes were the result of a market maker posting fixed-size quotes that faster traders kept hitting. Kalshi also said its perpetuals market maker programs pay for resting liquidity and do not reward traded volume.
A Kalshi spokesperson told CoinDesk that the company had not been contacted by the CFTC.
CFTC staff warning in August
In August, CFTC staff issued an advisory warning that volume-based reward programs 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 the company plans to replace the program.