UMA has restricted market resolution proposals to 37 whitelisted addresses through its Managed Optimistic Oracle V2, implemented on July 1, 2025, to enhance data accuracy and reduce disputes. The update aims to improve prediction market efficiency but raises concerns over centralization, prompting mixed reactions from the community.
Proposals Limited to 37 Whitelisted Addresses
Managed Optimistic Oracle V2 (MOOV2) by UMA restricts proposal submissions to 37 whitelisted addresses. The change aims to enhance accuracy and reduce disputes in DeFi prediction platforms like Polymarket. Involving Risk Labs and Polymarket staff, this measure responds to past inaccuracies. The UMIP-189 governance proposal, ratified on August 6, and executed on July 1, set this framework in place.
Community Divided Over Whitelisting Move
Community opinions are divided, with supporters emphasizing increased precision, while critics highlight worries over centralization. Polymarket assets, including Ethereum-based tokens, will likely experience enhanced data reliability. The new system is expected to reduce early proposal disputes and improve market efficiency.
Expected financial outcomes include decreased resolution-related losses. Previous market inefficiencies resulted in financial setbacks. Similar measures seen in MakerDAO's curated feeds and Synthetix's oracle upgrades offer insights into potential benefits.
Expert Insights on Centralization and Automation
Previous UMA models allowed broader proposal input, leading to inaccurate and premature actions. This mirrors earlier DeFi approaches like MakerDAO and Synthetix, emphasizing trusted sources over open processes.
Industry expert analysis suggests that while market integrity may improve, careful monitoring of centralization effects is necessary. Ongoing developments, like UMA’s AI experiments, highlight a trend towards automating proposer roles.
"The change aims to decrease proposal errors and improve overall market efficiency for non-contentious event settlements while preserving the ability of the wider community to dispute outcomes." - Risk Labs, Core Development Team, UMA