KalshiEX LLC has formally notified the Commodity Futures Trading Commission that it will terminate its Volume Incentive Program, with the change taking effect no earlier than October 13, 2026. The filing, submitted on September 28, replaces the program’s previous end date of October 1, 2027, meaning volume-based trader rewards are being wound down far earlier than originally scheduled.
The program was introduced in March 2023 and distributed rewards based on participants’ share of qualifying trading volume. Its stated goal was to increase order-book liquidity and improve pricing efficiency across Kalshi markets. Eligible activity generally involved trades executed through Kalshi’s central limit order book, including event contracts priced between $0.03 and $0.97. Market makers, Kalshi affiliates, introducing brokers, futures commission merchants and certain customers were excluded from eligibility.
The move comes as Kalshi faces scrutiny over unusually repetitive trading activity in its crypto perpetual futures. Market observers have flagged high reported volume, relatively low open interest and recurring Ether transactions of approximately $5,500. A FinanceFeeds analysis of public trade records found that Ether transactions valued within $2 of $5,499 represented about 57% of $13.5 million in sampled trades between September 17 and September 20. Similar concentrations appeared in sampled Bitcoin perpetual trading. Reports said the CFTC was examining trading after more than $5 billion of similarly sized Ether perpetual transactions were identified over roughly a month.
Kalshi has said it is not under investigation and has rejected allegations of wash trading, adding that self-trading is mechanically blocked and coordinated wash trading is prohibited and monitored. The company attributed the repeated prints to a liquidity provider posting predetermined quotes and hundreds of separate traders repeatedly taking the other side when prices moved in their favor. The filing does not state that the incentive program termination is related to the perpetual-futures controversy.
Trading activity has continued to grow despite the scrutiny. Monthly volume reached approximately $52.98 billion through September 29, already above the $38.67 billion recorded for August and the highest monthly figure reported for the platform. Earlier in September, Kalshi accounted for $9.6 billion of $10 billion in weekly non-sports prediction market volume, helped by distribution through Robinhood, Coinbase, Webull and Moomoo. The company has also expanded into perpetual futures and filed for products tied to individual U.S. stocks and ETFs.
Institutional interest remains strong: ARK Invest said its ARKK, ARKW and ARKF exchange-traded funds now have direct exposure to privately held Kalshi, and Kalshi is reportedly discussing another roughly $1 billion financing at a valuation of about $40 billion, following a $1 billion Series F at a $22 billion valuation earlier this year.
