Ethereum co-founder Vitalik Buterin stated that the current prediction markets are overly focused on short-term coin prices and "dopamine-type" products such as sports betting, forming a business model that relies on "naive traders" losing money, which makes it difficult to generate long-term social informational value. Vitalik proposed shifting prediction markets toward broader "hedging" uses, including hedging political risks for investors holding specific stocks, and creating prediction markets for various commodity and service price indices to tailor "future expenditure baskets" for individuals and institutions. This approach aims to replace traditional fiat stablecoins and currency concepts, building a new generation of financial infrastructure based on assets like ETH that combines both returns and risk management functions.

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