Futarchy is a governance system where decisions are made through prediction markets instead of traditional voting. Think of it as "betting on beliefs" - the market decides what's best for the protocol
Flash Trade is governed by FAFtarchy — a futarchy system where markets, not ballots, decide proposals. Instead of counting votes, each proposal opens conditional markets and the market's judgment determines the outcome.
A proposal is drafted
Ideas incubate with the community in Flash Labs, then are formalized against the proposal standards.
Two conditional markets open
A PASS market and a FAIL market trade side by side — participants back the outcome they believe helps Flash Trade. See Voting on Proposals.
The market decides
The Time-Weighted Average Price (TWAP) of the two markets determines the outcome — the side the market values more wins.
Execution is automatic
Approved proposals execute on-chain. Trades on the losing side are refunded.
Why markets instead of votes? Voting rewards popularity; markets reward being right. Participants put value behind their beliefs, so decisions aggregate information rather than sentiment.
Discussion and drafting: Flash Labs
Proposal rules: FAFtarchy Commandments
Trading on proposals: Voting on Proposals — live proposals are hosted on MetaDAO
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