# Mechanisms — The Governance Tools

The tools that make Living Capital and agent governance work. Futarchy, prediction markets, token economics, and mechanism design principles. These are the HOW — the specific mechanisms that implement the architecture.

## Futarchy
- [[futarchy is manipulation-resistant because attack attempts create profitable opportunities for defenders]] — why market governance is robust
- [[futarchy solves trustless joint ownership not just better decision-making]] — the deeper insight
- [[futarchy enables trustless joint ownership by forcing dissenters to be bought out through pass markets]] — the mechanism
- [[decision markets make majority theft unprofitable through conditional token arbitrage]] — minority protection
- [[agents create dozens of proposals but only those attracting minimum stake become live futarchic decisions creating a permissionless attention market for capital formation]] — how proposals filter
- [[MetaDAOs futarchy implementation shows limited trading volume in uncontested decisions]] — the liquidity constraint
- [[futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements]] — adoption barriers
- [[redistribution proposals are futarchys hardest unsolved problem because they can increase measured welfare while reducing productive value creation]] — the redistribution problem
- [[coin price is the fairest objective function for asset futarchy]] — why price works as objective

## Prediction Markets
- [[speculative markets aggregate information through incentive and selection effects not wisdom of crowds]] — why markets work
- [[Polymarket vindicated prediction markets over polling in 2024 US election]] — the vindication moment
- [[called-off bets enable conditional estimates without requiring counterfactual verification]] — mechanism design tool

## Token Economics & Governance
- [[token voting DAOs offer no minority protection beyond majority goodwill]] — why voting alone fails
- [[quadratic voting fails for crypto because Sybil resistance and collusion prevention are unsolvable]] — why not QV
- [[blind meritocratic voting forces independent thinking by hiding interim results while showing engagement]] — a design principle
- [[governance mechanism diversity compounds organizational learning because disagreement between mechanisms reveals information no single mechanism can produce]] — why multiple mechanisms
- [[optimal governance requires mixing mechanisms because different decisions have different manipulation risk profiles]] — mechanism selection

## Platform
- [[MetaDAOs Autocrat program implements futarchy through conditional token markets where proposals create parallel pass and fail universes settled by time-weighted average price over a three-day window]] — the on-chain mechanism
- [[MetaDAO is the futarchy launchpad on Solana where projects raise capital through unruggable ICOs governed by conditional markets creating the first platform for ownership coins at scale]] — the platform
- [[permissionless leverage on metaDAO ecosystem tokens catalyzes trading volume and price discovery that strengthens governance by making futarchy markets more liquid]] — the leverage thesis
