Cryptocurrency developers have gathered in a hacker house in Salt Lake City to test out a radical form of governance known as futarchy. This new form of governance entrusts the market with total control, a concept that is being explored by the Meta-DAO, the latest decentralized autonomous organization to use blockchains as an experimental platform for creating novel governance mechanisms.
Unlike traditional DAOs where token holders vote on proposals, Meta-DAO’s governance is based on what the market believes is the best outcome for its token, META. The goal of the DAO, according to Proph t, the creator of Meta-DAO, is to “make number go up.” This goal has sparked interest and excitement among attendees of mtnDAO, a month-long coworking conference for developers building on the Solana blockchain.
The rapid rise in META’s price in the spot market has caught the attention of venture investors, including Pantera Capital, who have an active proposal to buy a significant amount of META tokens from the DAO at a price below the spot market. The decision on whether to accept this proposal lies in Meta-DAO’s unique and experimental governance markets, which could potentially provide a framework for better human coordination.
Futarchy, the concept behind Meta-DAO’s governance, is based on the idea that speculative markets can make better decisions than pure democracies. Introduced by George Mason University Economics Professor Robin Hanson, futarchy relies on prediction markets where traders bet on the outcome of events to guide decision-making.
While futarchy has been attempted in crypto before, Proph t aims to build crypto’s first true futarchy with Meta-DAO. The pseudonymous developer, who describes himself as a “markets nerd,” envisions Meta-DAO becoming self-sufficient and transformative, much like Bitcoin did under the guidance of Satoshi Nakamoto.
As Meta-DAO continues to evolve and experiment with its governance mechanisms, it could potentially reshape human civilization and provide a new way to solve complex problems, including politics. With the support of venture investors and the enthusiasm of developers at mtnDAO, Meta-DAO’s journey towards a futarchy-based governance model is one to watch in the world of cryptocurrency and blockchain technology.