💢Futarchy

The idea of futarchy. In futarchy, we need to find some metric we want to optimise.

Let’s take the SEER token price for example metric (we could also try to optimise for Total Value Locked, some measure of market liquidity or the exactitude of a set of predictions) and the decision being on which platform should Seer be deployed. In order to make the best decision, we open markets for the future value of the metric if a particular decision is made. In our example, we would have markets about the value of SEER if Seer deploys on Ethereum mainnet, if it deploys on Gnosis chain, if it deploys Binance Smart Chain, etc. Then, the decision leading to the best metric is implemented and the other markets are reversed (this can be done pretty easily by having some tokens redeemable if the assumption of the market is not implemented). In our example, let’s assume that Gnosis chain gave the best estimated value, people who bet on markets about other chains just get their money back. When the future price of SEER is known, people can redeem their tokens of this market for some value depending on the price of SEER. Note that in futarchic markets using the token price as a metric, we can simplify those markets by having purchases and sales of tokens, conditional on some particular decision being implemented.

Futarchy could be a good way to make decisions for Seer. Other projects could also use Seer to implement their own futarchic governance.