Outcome Token
A digital token that represents a specific possible result in a prediction market and pays out if that result is confirmed.
An outcome token is a crypto token tied to one possible result of an event in a prediction market, such as “Candidate A wins” or “ETH is above a certain price on a certain date.” When a market is created, the possible outcomes are represented by separate tokens. Traders buy and sell these tokens based on how likely they think each outcome is, so the token’s price often acts as a rough market-implied probability.
Outcome tokens matter because they make event-based speculation and hedging programmable. If the event resolves in favor of an outcome, the matching token can usually be redeemed for a fixed payout, while losing outcome tokens become worthless or have no redemption value. For example, in a yes/no market, buying a “Yes” outcome token is similar to taking the position that the statement will be true. The market then depends on an oracle or resolution process to determine the final result.
Other terms in Prediction Markets
Conditional Token
A digital token whose value or payout depends on the outcome of a specific future event or condition.
Prediction Market
A prediction market is a trading venue where people buy and sell contracts tied to the outcome of future events.
Resolution Source
A resolution source is the official reference used to decide the outcome of a prediction market after the event occurs.