# MetaDAO AMM Migration

**Type:** Governance decision / Protocol upgrade  
**Date:** January 2024  
**Proposer:** joebuild  
**Status:** Passed and implemented  
**Domain:** internet-finance

## Overview

The AMM migration was MetaDAO's transition from a Central Limit Order Book (CLOB) to a liquidity-weighted Automated Market Maker (AMM) for futarchy governance markets. This proposal fundamentally restructured how MetaDAO's conditional markets operated.

## Key Changes

- **Market mechanism:** Replaced CLOB with liquidity-weighted AMM
- **State rent reduction:** Cut from 135-225 SOL/year to near zero
- **Manipulation resistance:** Introduced 3-5% swap fees making price manipulation expensive
- **Liquidity bootstrapping:** Required proposer initial liquidity provision

## Impact

Described as "the single most consequential decision market MetaDAO ever ran," the migration solved the existential threat of thin orderbooks that plagued the CLOB implementation. Without this change, "the system might have died from thin orderbooks."

## Timeline

- **2024-01** — Proposal passed through futarchy governance
- **2024-01** — AMM implementation deployed, replacing CLOB markets