Kalshi is moving to wind down its Volume Incentive Program, an initiative that compensated traders according to their qualifying trading volume. The prediction-market platform informed the US Commodity Futures Trading Commission (CFTC) that the scheme will wrap up no sooner than October 13, accelerating a conclusion that was initially scheduled for 2027.
The scheme launched in 2023 to stimulate trading participation, boost market liquidity, and foster more accurate pricing on Kalshi. Under the framework, participants who met the criteria earned a portion of set reward pools determined by their share of eligible volume.
Move Comes Amid Trading Activity Questions
The platform’s choice arrives alongside scrutiny over atypical trading behaviors within its cryptocurrency offerings. Investigations have highlighted frequent transactions valued at approximately USD 5,500 within Kalshi’s ether perpetual futures market, with these specific trades contributing more than USD 5 billion in recorded volume over the span of roughly a month.
Information examined by news outlets likewise uncovered consistent, fixed-value trades across Kalshi’s ether perpetual products. Additionally, transactions hovering near USD 5,499 made up a significant share of volume during a September sample timeframe. This trend has sparked inquiries regarding the extent to which the reported figures represent organic market participation.
Kalshi is cancelling their volume faking program
they just filed this motion to the @CFTC indicating that they were terminating their "Volume incentive programme" (a.k.a sponsored wash trading).
Looks like they are trying to backpedal quietly now that they got exposed.
wise… https://t.co/Xw6uuKotXk pic.twitter.com/65XhrJwHn6
— Quant Chad (@Autonomous_Chad) September 30, 2026
CFTC Scrutiny Reported
This irregular activity has likewise drawn regulatory focus. The Wall Street Journal indicated that the CFTC was looking into platform transactions following claims that repetitive trades might have artificially boosted ether perpetual futures volume. Conversely, reports note that Kalshi has pushed back against accusations of intentionally inflating its crypto trading numbers and stated it is not facing an active investigation regarding the subject.
The reported examination does not inherently prove that Kalshi broke any regulations. Moreover, queries regarding the trading trends stay distinct from the enterprise’s choice to conclude its volume incentive initiative.
Also Read: Minnesota Court Blocks Prediction Market Ban on Kalshi and Polymarket
Program Ending Ahead of Schedule
Kalshi’s filing omits an explicit rationale for terminating the reward scheme. The platform’s guidelines grant it the authority to cancel such offerings at will. This choice pulls the completion date forward by approximately a year compared to the original October 2027 target.
This transition unfolds while Kalshi’s broader trading volume expands. Data from The Block shows the exchange reached nearly USD 53 billion in volume leading up to September 29, though that metric accounted for a partial month. Consequently, concluding the volume-linked incentives may signal a new approach for how Kalshi fosters liquidity amid intensified regulatory oversight and questions concerning trading metrics.
