Posted 2/19/2024, 5:46:00 PM
Crypto Group Tests Controversial Futarchy Governance, Seeing Token Price Soar Over Speculative Decisions
- Meta-DAO is testing a form of governance called "futarchy" where markets dictate all decisions to increase the token price
- At a recent crypto conference, Meta-DAO's token price skyrocketed from $50 to over $1,000 within days as developers got hooked on its governance
- Futarchy entrusts speculative markets rather than experts or votes to make decisions, based on the theory traders are incentivized to research optimal outcomes
- A controversial discount token sale proposal by an outsider was ultimately rejected but drew venture capital firm Pantera to propose buying tokens
- Pantera's proposal caused Meta-DAO's token to spike and led to debates about rewarding those who add value amid objections to discount token sales