Truthful Mechanism Design

Definition ∞ Truthful Mechanism Design is a field within economics and computer science that focuses on designing rules for systems where participants are incentivized to reveal their true preferences or private information. The goal is to achieve socially optimal outcomes by aligning individual incentives with collective welfare. It ensures honest participation.
Context ∞ In decentralized autonomous organizations and blockchain governance, truthful mechanism design is a critical area of study to ensure fair and efficient decision-making. News often discusses how different voting systems or incentive structures are designed to prevent manipulation and encourage genuine participation. Implementing robust truthful mechanisms is essential for the long-term viability of decentralized governance.