Kalshi is shutting down its Volume Incentive Program, a rewards scheme that paid traders a cut of fixed prize pools based on how much they traded, according to a notice the prediction market filed with the Commodity Futures Trading Commission on Monday.

The termination takes effect no earlier than Oct. 13, 2026. A redlined copy of the program’s terms in the filing shows the end date moved up from Oct. 1, 2027. The notice gives no reason, citing a Kalshi rule that lets the exchange end incentive programs “as the Exchange determines in its sole discretion.”

This story is an excerpt from the Unchained Daily newsletter.

How the Program Worked

Kalshi first filed the program in February 2023, saying it would “incentivize trading and increase volume and enhance pricing efficiency” on the exchange. Under its current terms, each eligible market carried a fixed Volume Reward, split among traders in proportion to their share of eligible volume on the central limit order book.

Members with market maker agreements were excluded. Event contract trades counted only if priced between 3 cents and 97 cents, with rewards capped at half a cent per contract. That price band did not apply to perpetual futures, the filing says.

Wash Trading Allegations

The notice lands a week after an analyst known on X as Beni alleged that trades of exactly $5,500 made up about half of the volume in Kalshi’s ether perpetual on several days. The Wall Street Journal then reported that the CFTC was examining the trades before deciding whether to open an enforcement investigation, saying the repeating size drove more than $5 billion of ether perp volume in a month.

Kalshi has denied wash trading. In a Sept. 22 blog post, it said a market maker posting fixed-size quotes that faster traders kept hitting explained the repeated sizes, and that its perpetuals market maker programs pay for resting liquidity and “do not reward volume traded.” A Kalshi spokesperson told CoinDesk the company had not been contacted by the CFTC.

Regulator’s August Warning

In August, CFTC staff issued an advisory warning that volume-based rewards with steep tiers or threshold bonuses “can encourage participants to trade solely to reach volume targets.” Staff asked exchanges to review incentive programs already on file and submit any amendments by Sept. 14.

Kalshi’s filing does not say whether it plans to replace the program.

Related Listen: Why Kalshi’s Timeline Fight Put Its ETH Perp Volume Under a Microscope: Uneasy Money