Design and Evaluation of Multi-Agent AI Oracle Systems for Prediction Market Resolution

Multi-agent LLM systems fail in production at rates between 41% and 87%, mostly due to coordination defects rather than base-model capability. Existing responses split between cataloguing failure modes empirically and shipping declarative orchestration frameworks as engineering tools; neither delivers a principled mapping from coordination configuration to predictable failure-mode signature. We argue that coordination should be treated as a configurable architectural layer, separable from agent logic and from information access, enabling architectural reasoning rather than only engineering productivity. We instantiate this with an information-controlled design on prediction markets: a single LLM, fixed tools, fixed per-call output cap, and fixed prompt template across five reference coordination configurations, with total compute per question treated as an endogenous architectural output. The Murphy decomposition of the Brier score separates calibration from discriminative power, so configurations leave distinguishable signatures even when aggregate scores coincide. On 100 Polymarket binary markets resolved after the model's training cutoff (claude-opus-4-6) we report Murphy signatures, a cost-quality Pareto frontier, category-conditioned analysis, and a bootstrap power-projection. Three of five pre-specified predictions are upheld in direction; two configurations dominate the Pareto frontier within this regime; exploratory bootstrap intervals separate consensus alignment from others, though pairwise tests do not survive Bonferroni correction at n=100. We also deploy the same configurations as live agents on Foresight Arena under web-search-enabled conditions, as an on-chain replication channel accumulating in parallel. Harness, trace dataset, and production agents are released. We position this as a methodology-validating first instantiation, not a general cross-model claim.

Evaluating the true forecasting ability of AI agents requires environments that are resistant to environments resistant to overfitting, free from centralized trust, and grounded in incentive-compatible scoring. Existing benchmarks either rely on static datasets vulnerable to training-data contamination, or measure trading PnL -- a metric conflating predictive accuracy with timing, sizing, and risk appetite. We introduce Foresight Arena, the first permissionless, on-chain benchmark for evaluating AI forecasting agents on real-world prediction markets. Agents submit probabilistic forecasts on binary Polymarket markets via a commit-reveal protocol enforced by Solidity smart contracts on Polygon PoS; outcomes are resolved trustlessly through the Gnosis Conditional Token Framework. Performance is measured by the Brier Score and a novel Alpha Score -- proper scoring rules that incentivize honest probability reporting and isolate predictive edge over market consensus. We provide a formal analysis: closed-form variance for per-market Alpha, the connection to Murphy's classical Brier decomposition, and a power analysis characterizing the number of rounds required to reliably distinguish agents of different skill levels. We show that detecting a true edge of $α^* = 0.02$ at 80% power requires approximately 350 resolved binary predictions (50 rounds of 7 markets), while $α^* = 0.01$ requires four times more. We complement these analytical results with a deterministic, seed-controlled simulation study calibrated to literature-reported Brier-score ranges, illustrating how Murphy decomposition distinguishes well-calibrated agents from market-tracking agents that fail through reduced resolution. Live results from the deployed benchmark will be reported in a future revision. All smart contracts and evaluation infrastructure are open-source.

This paper introduces PolyGnosis 2.0, a pioneering multi-agent architecture designed to extract predictive intelligence by synthesizing Polymarket anomaly signals with global Open Source Intelligence (OSINT) streams, specifically Global Database of Events, Language, and Tone (GDELT). We define and target "Perspective Mismatches", the narrative divergence between Polymarket sentiment and global media flows, as high-alpha trading signals. Moving beyond generic agentic superiority, we rigorously quantify the efficacy of "Harness Engineering" techniques, including reflection loops, tool-calling, divide-and-conquer partitioning (D&C), and chain-of-thought (CoT), within high-noise financial domains. Our empirical evaluation against human-expert benchmarks reveals that while structural partitioning is mandatory for multi-dimensional alignment, unconstrained terminal reflection actively induces logical drift. Furthermore, we identify a pervasive "consensus bias" across all agent configurations during narrative reasoning, necessitating deterministic validation. Ultimately, we isolate a Pareto-optimal configuration that achieves professional-grade analytical precision while minimizing latency and token overhead, providing a robust blueprint for autonomous intelligence in prediction markets.