Project title: Futarchy
One-liner: Empowering the ecosystem through futarchy. That’s sharing the entire or a part of the ecosystem’s success with the community.
Project DAO: Futarchy DAO
Challenge area or bounty: Re-imagine the NEAR Community Fund
Project members
- Ivan Molto (ivanmolto.near)
Project Summary
A project focused on re-imagining the NEAR Community Fund empowering the ecosystem through futarchy. That is sharing the NEAR Community Fund rewarding community participants for signaling in prediction markets.
Futarchy is a form of governance proposed by the economist R. Hanson in which prediction markets are used to determine which policies will have the most positive effect.
To try to mimic this kind of governance every community proposal will begin as a post on a Snapshot poll and that poll will decide the proposal’s outcome.
By using prediction markets to guide the NEAR Community Fund, the fund can combine its objectives with public expertise and a community to share in its successes.
The governance process is primarily conducted using a created Flux protocol prediction market and Snapshot. Anyone can join and participate in any proposal discussion as well as start their own.
To manage by futarchy, here there are only two requirements to create a proposal: create a Snapshot poll and a prediction market through Flux protocol.
Create Snapshot Poll for a Proposal
Snapshot is an off-chain gasless multi-governance client with easy to verify, hard to contest results, and fully open source.
To create a valid Proposal Snapshot poll for governance:
We need to create our own space and set up our space settings such as name, network, symbol, and so on.
Once we have our own space, we will need to use the bridge from Ethereum to NEAR - the Rainbow Bridge and click on “Connect wallet” to connect with a wallet provider where we hold relevant token and click on “New Proposal”.
Now, it is time to fill out the title in accordance with the project and fill out the large text field with the community proposal.
And enter the refined list of poll outcomes in the Choices field and include YES Passed or NO Make no changes as outcomes.
Go to the “Actions” box and select the start data and the end date (allowing 14 days for voting).
Create a Prediction Market using Flux Protocol
Flux is creating the infrastructure powering open financial markets
The proposal must have a prediction market created using Flux and with the market collateralized in NEAR.
Once this market is created, anyone can trade on it.
Once the prediction market is closed this market will resolve to “Yes” if the Snapshot Poll signals Passed and the market will resolve to “No” if the Snapshot Poll signals Make no changes.
Rewarding everyone on the winning market in proportion to how many tokens they have.
Duration: 14 days
Snapshot poll’s end date is 14 days after the day on which the proposal is posting.
After 14 days the poll and the prediction market will automatically close, and then it can be evaluated if the proposal passes.
Proposal Passing Requirement
For a proposal to be accepted there must be one outcome with a relative majority of the token used for signaling the proposal on the Snapshot poll accompanied by a Yes-vote in the prediction market. If not, the proposal will not be accepted and considered closed.