---
type: entity
entity_type: decision_market
name: "MetaDAO: Develop AMM Program for Futarchy?"
domain: internet-finance
status: passed
parent_entity: "[[metadao]]"
platform: "futardio"
proposer: "joebuild"
proposal_url: "https://www.futard.io/proposal/CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG"
proposal_date: 2024-01-24
resolution_date: 2024-01-29
category: "mechanism"
summary: "Replace CLOB markets with AMMs using liquidity-weighted pricing to solve liquidity and manipulation problems"
tracked_by: rio
created: 2026-03-11
---

# MetaDAO: Develop AMM Program for Futarchy?

## Summary
Proposal to replace Central Limit Order Books (CLOBs) with Automated Market Makers (AMMs) in MetaDAO's futarchy implementation. The AMM design uses liquidity-weighted average price over time as the decision metric, with 3-5% fees to incentivize LPs and discourage manipulation. Addresses three core problems: lack of liquidity, manipulation susceptibility, and high state rent costs (135-225 SOL annually).

## Market Data
- **Outcome:** Passed
- **Proposer:** joebuild
- **Created:** 2024-01-24
- **Completed:** 2024-01-29
- **Budget:** 400 META on passing + 800 META on completion
- **Timeline:** 3 weeks development + 1 week review

## Significance
This represents a fundamental architecture change in MetaDAO's futarchy implementation, moving from orderbook-based to AMM-based conditional markets. The proposal explicitly diagnoses liquidity as the primary barrier to effective futarchy governance and proposes a mechanism redesign rather than incremental improvements. The liquidity-weighted pricing metric is a novel approach to futarchy settlement, departing from pure time-weighted average price.

## Technical Scope
**Program changes:**
- Basic AMM with liquidity-weighted average price tracking
- Integration with autocrat + conditional vault programs
- Permissionless pause feature (send back positions after verdict)
- Permissionless close feature (return state rent SOL when no positions remain)
- Loosen time restrictions on proposal creation (currently 50 slots)
- Revert-to-fail mechanism if proposal instructions fail after X days

**Frontend integration:** Led by 0xNalloK

**Team:** joebuild (program), 0xNalloK (frontend), TBD (review)

## Relationship to KB
- [[metadao]] - governance mechanism evolution
- [[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]] - mechanism being replaced
- [[futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements]] - problem being addressed