Payout and Settlement

Once the outcome is finalized, Polypump’s smart contract immediately settles the market:

• All stakes on the losing side are collected. A predetermined fraction of that total is taken out for fees (burn + dev reward).
• The remaining portion of the losing side’s stake becomes the reward pool for the winners.
• Participants who bet on the winning side receive their payout automatically. Each winner receives their initial stake back plus a share of the losers’ stakes proportional to their contribution to the winning side. This is handled in a single transaction per winner or can be claimed by the user through the platform UI.
• The burn mechanism is executed: the fee portion reserved for burning is used to reduce supply. If the market was in $POLYPUMP, those tokens are directly burned. If it was in SOL, the equivalent value could be converted to $POLYPUMP (via a swap on a DEX) and then burned, or in some cases SOL could be sent to an unrecoverable address. This deflationary action increases scarcity of $POLYPUMP, benefiting all token holders.
• The developer reward portion is transferred to the designated developer/treasury address. This could be in the form of SOL or $POLYPUMP depending on the market currency and how the fee policy is set. These funds support the platform’s development and maintenance. (In future, this fund might also be partially redistributed as community incentives or used to bootstrap new markets.)

Finally, the market is marked as resolved. The outcome (Yes/No) is recorded and visible. Users can see the final statistics — for example, “Yes won with 1500 $POLYPUMP vs 500 $POLYPUMP staked on No.” The platform might also display the factual outcome (e.g., “600 tokens migrated today, so the result is YES”). All of this happens seamlessly through the Polypump program on Solana, ensuring trustless execution. Users can withdraw their winnings, and the market is closed to further activity. The entire lifecycle from creation to payout is managed on-chain, with the Polypump UI and API providing a user-friendly way to interact with the contracts.