Market-Driven Governance
Futarchy replaces opinion-based voting with market-based decision making. Let prices aggregate information and guide collective decisions.
Futarchy is a governance system that uses markets to decide which actions are expected to create value. Instead of voting on proposals based on opinions, participants trade in markets that represent different outcomes. Market prices aggregate information and guide decisions.
Proposals are built for specific actions, such as spending or moving money from the Treasury. After sufficient tokens are staked, markets open where people trade based on expected outcomes. A Time-Weighted Average Price (TWAP) automatically executes or rejects the proposal on-chain.
Markets pay people for being right, not for being loud or influential. Through capital risk exposure, participants are encouraged to act on real information. This enables better decisions compared to opinion-based voting.