Polymarket has started deploying a new smart contract framework designed to support more prediction-market formats through a single exchange, beginning a transition that is tentatively scheduled to affect new markets from Nov. 2. Existing positions will remain on the platform’s current system.
According to Cointelegraph, the rollout began Monday and is initially being tested across a limited selection of live markets. The testing phase is expected to continue through Oct. 30, ahead of the planned November changeover. Polymarket has not said that the transition will require users to move existing holdings or take technical migration steps.
A new foundation for prediction markets
The upgrade replaces infrastructure based on code developed in 2019. Under the previous design, launching additional types of prediction markets required separate contracts. Protocol V2 is intended to bring different market formats under one exchange and one broader contract framework.
The change matters because smart contracts determine how blockchain-based applications create, trade and settle digital positions. By rebuilding that infrastructure, Polymarket is preparing its platform for new market features and potentially for operation across more than one blockchain.
Polymarket currently runs its prediction markets on Polygon, an Ethereum scaling network. The new system has been designed so that positions, collateral and market-outcome information can be transferred between blockchains. However, the company has not announced which networks it may support or when any cross-chain functionality will become available.
pUSD becomes the only collateral token
Protocol V2 uses Polymarket USD, or pUSD, as its sole collateral token. It also introduces a single contract for position tokens and one exchange intended to support multiple market types.
Polymarket introduced pUSD during an exchange upgrade in April 2026. The token is backed on a one-to-one basis by USDC, the dollar-pegged stablecoin issued by Circle. Polygon is also the network where pUSD is issued.
For users, the migration guide says existing positions will not be converted into V2. People trading through Polymarket’s app or website should not need to complete a technical migration, although the platform may ask them to approve new contracts when they trade.
Upgradeable contracts and market-outcome systems
Another feature of V2 is the use of upgradeable smart contracts. Polymarket says changes can be made through a secure governance process, potentially limiting the need to deploy separate contracts each time the platform adds functionality.
The protocol also includes OracleAggregator, which is designed to connect with multiple oracle providers, including UMA and Chainlink. Oracles supply external information used to determine the result of prediction markets.
Polymarket said the new system has been audited by Cantina, Quantstamp and Zellic, and formally verified by Certora. The company is offering bug-bounty rewards of up to $5 million for critical vulnerabilities.
Market picture
Moneyiar data at 10:24 a.m. on Oct. 7, 2026, showed Polygon’s former MATIC token, now listed as POL, at $0.102937558, down 6.62% over 24 hours and 11.02% over seven days. OriginTrail (TRAC) stood at $0.4001030114, down 3.36% in 24 hours and 7.46% over seven days. RedStone (RED) was $0.1499416199, down 9.54% over 24 hours and 10.77% over seven days. These figures reflect Moneyiar market data at the stated times and do not measure Polymarket’s protocol activity.
