add domains/internet-finance/amm-futarchy-reduces-state-rent-costs-by-99-percent-versus-clob-by-eliminating-orderbook-storage-requirements.md
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type: claim
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domain: internet-finance
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description: "AMM architecture eliminates the 3.75 SOL per market pair cost that CLOBs require for orderbook state storage"
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confidence: likely
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source: "MetaDAO proposal CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG, 2024-01-24"
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created: 2026-03-11
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# AMM futarchy reduces state rent costs by 99 percent versus CLOB by eliminating orderbook storage requirements
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Central Limit Order Books (CLOBs) in futarchy implementations require 3.75 SOL in state rent per pass/fail market pair on Solana, which cannot be recouped under current architecture. At 3-5 proposals per month, this creates annual costs of 135-225 SOL ($11,475-$19,125 at January 2024 prices). AMMs cost "almost nothing in state rent" because they don't maintain orderbook state—just pool reserves and a price curve.
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The MetaDAO proposal notes that while state rent can theoretically be recouped through OpenBook mechanisms, doing so "would require a migration of the current autocrat program," making it impractical for existing deployments.
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This cost differential becomes material at scale: a DAO running 50 proposals annually would spend ~$30K-$50K on CLOB state rent versus near-zero for AMMs, creating strong economic pressure toward AMM adoption independent of other mechanism considerations.
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## Evidence
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- MetaDAO proposal documents 3.75 SOL state rent cost per CLOB market pair
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- Annual projection: 135-225 SOL for 3-5 monthly proposals
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- AMM state requirements described as "almost nothing"
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- State rent recovery requires autocrat program migration (feedback section)
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---
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Relevant Notes:
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- [[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]]
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- metadao.md
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Topics:
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- domains/internet-finance/_map
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- core/mechanisms/_map
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