MetaDAO is a meta-governance protocol on Solana that empowers other DAOs and protocols with a different choice from the standard token-based voting. By putting Futarchy into practice, it unlocks a price-driven democracy where markets break the governance mold. Through MetaDAO’s Futarchy decision markets anyone, regardless of how many governance tokens they hold, can speculate on what they think will happen to a protocol’s token price should a given proposal pass, or fail. This data is aggregated and used to give a final pass or fail result based completely on which result decision market participants thought would yield a higher price. Partner protocols, which include Drift, among other Solana-based projects, will then base their decision-making for specific proposals completely on the end result of this market.
Source: Google Trends – Prediction Markets Interest (blue) vs Decision Markets Interest (red)
On the surface, MetaDAO’s implementation of decision markets is relatively simple. The concepts that inspired the protocol’s creation date back decades, with the term Futarchy first coined by economist Robin Hanson back in 2000. MetaDAO actually represents the first implementation of Futarchy since the concept’s inception, initially envisioned as a way to govern in the real world. It is these broader political and theoretical principles that give MetaDAO a high ceiling beyond its current product. With growing distaste for various facets of real-world governance, and the recent rise of prediction markets, MetaDAO finds itself in a unique position, operating as the sole player in the field of Futarchy, which is a subset of the broader information and decision markets sector
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