---
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: "Proposal to replace CLOB-based conditional markets with AMM architecture to improve liquidity and reduce state rent costs"
key_metrics:
  budget: "400 META on passing + 800 META on completion"
  timeline: "3 weeks development + 1 week review"
  team: "joebuild (program), 0xNalloK (frontend), TBD (review)"
tracked_by: rio
created: 2026-03-11
---

# MetaDAO: Develop AMM Program for Futarchy?

## Summary

Proposal to migrate MetaDAO's futarchy implementation from Central Limit Order Books (CLOBs) to Automated Market Makers (AMMs) to address three structural problems: liquidity fragmentation from wide bid-ask spreads, manipulation vulnerability through midpoint pushing and wash trading, and state rent costs of 3.75 SOL per market pair.

## Market Data

- **Outcome:** Passed
- **Proposer:** joebuild
- **Created:** 2024-01-24
- **Completed:** 2024-01-29
- **Budget:** 400 META on passing + 800 META on completion (1,200 META total)
- **Timeline:** 3 weeks development + 1 week review

## Proposal Details

**Problem Statement:**
1. Lack of liquidity: Wide valuation uncertainty discourages limit orders near midpoint
2. Manipulation susceptibility: 1 META can push midpoint; VWAP vulnerable to wash trading
3. State rent costs: 3.75 SOL per market pair = 135-225 SOL annually ($11,475-$19,125)

**Solution:**
- AMM with liquidity-weighted price metric (more liquidity = more weight to current price)
- High fees (3-5%) to incentivize LPs and deter wash trading
- Proposers lock initial liquidity and set starting pass/fail prices
- Near-zero state rent costs

**Implementation Scope:**
- Write basic AMM tracking liquidity-weighted average price
- Integrate AMM into autocrat + conditional vault
- Feature to pause swaps and return positions after verdict
- Feature to close AMMs and return state rent SOL
- Loosen time restrictions on proposal creation (currently 50 slots)
- Auto-revert to fail if proposal instructions don't execute after X days

**Team:**
- joebuild: program development
- 0xNalloK: frontend integration
- TBD: expert review

## Significance

First major architectural change to MetaDAO's futarchy implementation since launch. The migration from CLOBs to AMMs represents a fundamental shift in how conditional markets operate - from discrete order books to continuous pricing curves. The proposal explicitly prioritizes liquidity and manipulation resistance over features like one-sided liquidity provision.

The state rent economics are notable: at 3-5 proposals/month, CLOB costs compound to $11K-$19K annually, making AMMs economically necessary at scale.

## Relationship to KB

- [[metadao]] - core mechanism upgrade
- [[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]] - implementation being modified
- [[futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements]] - addresses liquidity friction