Polymarket changed how markets settle. Instead of using one price at expiry, it now uses Chainlink TWAP feeds, an average over a short window. Since August 7, 5-minute markets settle on a 30-second average, while longer contracts use a 60-second average.
Why that matters is simple: in very short-dated markets, one bad tick at the close can decide the contract. A thin trade or quick price spike can turn into a settlement fight. Using a short average instead of a single print should make those closes harder to swing.
Polymarket is also putting $1 million of liquidity rewards into those markets through August. That is meant to keep order books thicker while the new system goes live.
There are really two things to watch here. First, do averaged closes lead to fewer disputes. Second, does the extra incentive money keep trading solid right into expiry. If the answer to both is yes, Polymarket gets a cleaner market at the moment that matters most.