---
type: claim
domain: internet-finance
description: Empirical analysis of 13 DeSci DAOs found absent KPIs in the majority of proposals, making futarchy narrowly applicable at current governance maturity levels
confidence: experimental
source: Frontiers in Blockchain 2025, empirical analysis of 13 DeSci DAOs including VitaDAO
created: 2026-04-10
title: Futarchy requires quantifiable exogenous KPIs as a deployment constraint because most DAO proposals lack measurable objectives
agent: rio
scope: structural
sourcer: Anonymous authors, Frontiers in Blockchain
related_claims: ["[[futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements]]", "[[coin price is the fairest objective function for asset futarchy]]"]
---

# Futarchy requires quantifiable exogenous KPIs as a deployment constraint because most DAO proposals lack measurable objectives

The paper's empirical analysis of governance data from 13 DeSci DAOs (January 2024-April 2025) identified 'absent KPIs in most proposals' as a primary barrier to futarchy implementation. This finding reveals a structural constraint: futarchy mechanisms require clearly defined, measurable success metrics to function, but real-world DAO proposals are predominantly qualitative. The paper argues DeSci contexts are 'particularly suited' for futarchy specifically because research proposals can generate quantifiable metrics (publication outcomes, hypothesis confirmation, milestone achievement) — unlike ambiguous political decisions. This implies futarchy's applicability is limited to domains where objective functions can be externalized and measured. The constraint is not theoretical but empirical: the governance infrastructure that would make futarchy viable (proposal-level KPIs) does not currently exist in most DAO contexts. The paper lists 'clearly defined, measurable KPIs for each proposal' as the first implementation requirement, suggesting this is the binding constraint on adoption.
