Futarchy Model

Definition ∞ The Futarchy Model is a governance system where decisions are made based on the outcomes predicted by prediction markets. Instead of directly voting on policy proposals, participants vote on whether specific policies will lead to a desired measurable outcome. This system leverages collective intelligence to inform better policy choices.
Context ∞ The Futarchy Model is a theoretical concept primarily discussed within the realm of decentralized autonomous organizations (DAOs) and blockchain governance. A key debate involves its practical implementation challenges, including the design of effective prediction markets and the selection of verifiable objective metrics. Observing experimental DAO governance structures provides insight into the potential for such innovative decision-making frameworks.