Prediction markets function as bounty markets. Think about it—when you participate in these platforms, you're essentially competing for rewards by accurately forecasting outcomes. Whether it's crypto prices, political events, or sports results, the mechanism remains the same: correct predictions capture value from incorrect ones. This bounty-driven model creates genuine price discovery and keeps participants incentivized to share their best insights. It's one of the reasons prediction markets have become increasingly relevant in the Web3 ecosystem.