Futarchy in Plain Language
Futarchy means markets help run a project. People trade on ideas instead of casting empty votes. Economist Robin Hanson proposed it. Ask: which choice would make the project more valuable? Then follow that signal.
In most DAOs, token holders vote. Few people show up. Big holders win. Being wrong costs almost nothing. Futarchy flips that. Traders put money behind what they think will help — or hurt — the project.
How Market-Based Rules Work
Each proposal opens a pass market and a fail market. People trade on the token's value under each path. If pass looks better for value, the proposal passes. If fail looks better, it fails.
MetaDAO runs this on Solana. Prices guide choices. Being right about value matters more than holding a large bag.
In short: markets ask what helps the project. Votes often ask what people prefer. Those are different questions.
