GlossaryAdvanced
Futarchy
A governance model that uses prediction markets to help decide policy outcomes.
Futarchy is a governance model proposal in which prediction markets are used to forecast the likely outcome of different proposed policies, with the policy predicted to produce the best measured outcome being adopted.
It remains a largely experimental, minority-adopted governance approach rather than a widely established standard.
Examples
- A futarchy-based DAO might use prediction market pricing to decide between two competing proposals.
- Futarchy remains an experimental governance approach, not a widely adopted standard.