What is Precedence?

Precedence refers to the use of past resolutions as references for evaluating new disputes. When a proposal is disputed, UMA stakeholders rely on established precedents to guide resolution. This promotes consistency, predictability, and fairness by creating a framework for resolving similar issues.

Precedence does not arise from a single resolution but is established when multiple proposals follow a consistent pattern. During disputed proposal discussions, stakeholders must consider how a resolution will influence existing precedents. Since UMA values consistency and alignment with past decisions, assessing the impact of each resolution on precedent is essential.

UMA community members typically treat precedent as overriding all other forms of evidence, except for Polymarket clarifications. For example, in P4 cases, if precedent dictates waiting for the next data point, supporting evidence for a P1 or P2 outcome is not sufficient to override that precedent. However, this approach has been a topic of ongoing debate, with some questioning whether precedents remain valid or relevant in all contexts.

Precedents are market-specific. A precedent set in one market, such as the NBA, may not apply to another, such as F1.

Guiding Principles

• Precedents should be overturned if prior resolutions are found to be incorrect.

• Precedents apply only within their relevant market context.

• Not every resolution sets a precedent. Only those with repeated application and clear, consistent logic qualify.

What's Next

Now that you understand what precedence means, let's take a closer look at how resolution criteria are satisfied.