Kalshi Ends Volume Incentive Program Amid Regulatory Scrutiny

Kalshi, a regulated exchange for trading real-world event outcomes, is discontinuing its Volume Incentive Program, which rewarded traders based on their share of eligible trading activity. This decision, effective October 13, 2026, follows a notice filed on September 28.

The Volume Incentive Program allocated rewards from fixed per-market pools based on each participant’s share of eligible volume on Kalshi’s central limit order book. Trades needed to be executed within a specific price range to qualify, and certain groups, such as affiliates and those under specific agreements, were excluded from participation.

This program aimed to enhance liquidity and improve pricing efficiency across Kalshi’s event contract markets, which include various topics from elections to economic indicators and crypto-related futures. However, the decision to end the program may reflect the exchange's response to regulatory pressures, given its unique position as a CFTC-regulated platform.

Despite this termination, Kalshi will continue to operate separate liquidity-focused incentive arrangements extending into 2027, indicating a strategic recalibration rather than a complete withdrawal from incentivizing trading activity.

Traders who previously optimized their strategies around the Volume Incentive Program will need to adjust their approaches, as the modest cap on rewards may no longer support certain trading patterns without the subsidy.