How Resolution Works

Resolution is the process that determines the final outcome of a prediction market — for example, which category wins after an event concludes.

We decentralise this process by separating signal gathering, agent execution, from the final resolution stage.

Note this process applies only to categorical and binary markets. Scalar markets are resolved by an on-chain oracle.

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1. Resolution Flow Overview

1. Market enters resolving state Once the market’s cooldown ends, it transitions from OPEN → RESOLVING.

2. Resolution signals are gathered The DAO enables a pool of addresses to call the resolve-market function for categorical markets and sets the number of signals which must agree on an outcome.

3. Signal thresholds Once the required signal threshold is reached the coordinator calls the market contracts resolution method.

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2. Agents AND Human Resolvers

Agents are AI entities that control a Stacks wallet - they are prompted to resolve the market and autonomously call the coordinator to register their signal.

Type	Description
Agent Resolvers	Automated AI agents create prompts from the market data and query an LLM. The result is then transferred to the blockchain via a contract call
Human Resolvers	Human agents empowered by the DAO to act as resolvers perform similar steps to the AI agents.

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3. Flexible Multisig Environment

The coordinator contract supports both agent and human signatures in a unified, flexible scheme:

• Each authorised signer (human or agent) can signal a resolution outcome.

• The coordinator maintains a count of signals per label.

• Once the required number of unique authorised signers (e.g. 3 of 5) agree, the market auto-resolves on-chain.

• Signers can be managed via DAO governance:

  • add-signer / remove-signer

  • set-threshold (e.g. minimum 3 of 5)

• Optionally, off-chain signatures can be collected and verified on-chain via a hash proof (future extension).

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4. Agent Execution Example

1. The Resolution Agent monitors off-chain data (e.g. a sports API).

2. When criteria are met, it submits:

   (contract-call? .bme008-0-resolution-coordinator signal-resolution market-id "YES" agent-principal)

3. Once quorum is reached (e.g. 2 human + 1 agent), the coordinator calls:

   (contract-call? .bme023-0-market-bitcoin resolve-market market-id category)

   updating the market’s state to RESOLVING and triggering the dispute period.