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Polymarket plans to move all new markets to Protocol V2 from November 2, while existing markets will remain on the current framework. At the same time, the company plans to challenge a Dutch regulatory ban in court.
The upgrade introduces a single positions token contract, pUSD-only collateral, market-specific exchanges, new oracle options, and an updated data service. Existing markets will remain on the current Conditional Tokens Framework.
Polymarket began rolling out V2 on October 5 under its development team and protocol head Rajath Alex. Canary markets will test the architecture through October 30 before the wider November transition.
Protocol V2 replaces the Gnosis Conditional Tokens Framework that Polymarket has used since 2019. Under the new design, every outcome share will exist inside one ERC-1155 positions token contract.
ERC-1155 allows one smart contract to manage several token types. Polymarket describes the wider V2 design as unified, modular, and audited. The platform will also accept only pUSD as collateral for positions. That structure places market backing under one collateral asset and creates a standard model for accounting and settlement.
Meanwhile, V2 introduces separate exchanges for individual markets alongside a router. The router will direct orders to the appropriate exchange and support a more unified trading process.
The upgrade also introduces OracleAggregator, which allows Polymarket to use different oracle providers. Supported options include UMA and Chainlink.
As a result, Polymarket can select an oracle according to each market rather than rely on one resolution method across the platform. Polymarket will test that system through its canary markets until October 30. All new markets will then move to V2 on November 2.
Developers will also receive Data API v2, which uses Polymarket's in-house on-chain indexer. The company will therefore process and organize blockchain information through its own infrastructure.
The API provides standardized data formats and cursor-based pagination. These features can support developers building dashboards, analytics products, and trading tools using Polymarket data. Polymarket also subjected Protocol V2 to reviews from six auditing firms, including Certora. Separately, its bug bounty offers rewards of up to USD 5 million for critical vulnerabilities.
Existing markets will not move automatically to Protocol V2. Positions created through the Conditional Tokens Framework will remain intact instead of shifting during active trades.
Therefore, the November 2 change applies to newly created markets rather than every position already running on the platform. The technical transition comes as Polymarket also expands safeguards for users. It recently introduced voluntary lockouts lasting 30 days, one year, or permanently. U.S. users can also choose daily, weekly, or monthly deposit limits.
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Alongside the protocol rollout, Polymarket plans to challenge the Netherlands' decision to block the platform. The company reportedly told Financieele Dagblad that it will take the dispute to court.
The Dutch Gambling Authority, known as the Ksa, ordered Polymarket to stop operating in February. The regulator said the company offered gambling services without a required Dutch license.
The Ksa also fined Polymarket EUR 420,000 and moved to block access to its website. Polymarket disputes the regulator's classification. It argues that its contracts resemble financial derivatives and should instead fall under the Dutch Authority for the Financial Markets.
Users on Polymarket trade contracts linked to real-world events. Those contracts settle according to whether specified outcomes occur.
The company compares that structure with futures markets, where traders take positions linked to future asset values. Critics cited by Financieele Dagblad instead compared the contracts with binary options.
Binary options generally involve two possible outcomes and can result in a fixed payout or loss. Much of Europe already prohibits those products. Dutch users traded more than USD 30 million in contracts tied to last year's parliamentary election. Those markets included questions about whether political parties would gain or lose seats.
Financieele Dagblad reported in May that many Dutch users moved to competing platforms after authorities blocked Polymarket. Meanwhile, Polymarket has hired longtime Goldman Sachs banker Lisa Mantil as head of institutional growth. The appointment comes as the platform develops new infrastructure while facing regulatory questions in Europe.
Polymarket will move new markets to Protocol V2 on November 2 after its canary testing period ends. The system adds pUSD collateral, flexible oracles, new exchanges, Data API v2, and added security reviews while the company prepares to challenge its Netherlands ban in court.
