1507f901d9
- Source: inbox/archive/2024-01-24-futardio-proposal-develop-amm-program-for-futarchy.md - Domain: internet-finance - Extracted by: headless extraction cron (worker 5) Pentagon-Agent: Rio <HEADLESS>
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| type | entity_type | name | domain | status | parent_entity | platform | proposer | proposal_url | proposal_account | proposal_number | proposal_date | resolution_date | category | summary | key_metrics | tracked_by | created | ||||||||
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| entity | decision_market | MetaDAO: Develop AMM Program for Futarchy | internet-finance | passed | metadao | futardio | joebuild | https://www.futard.io/proposal/CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG | CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG | 4 | 2024-01-24 | 2024-01-29 | mechanism | Migrate MetaDAO futarchy markets from CLOB to AMM architecture to improve liquidity and reduce state rent costs |
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rio | 2026-03-11 |
MetaDAO: Develop AMM Program for Futarchy
Summary
Proposal to replace Central Limit Order Books (CLOBs) with Automated Market Makers (AMMs) for MetaDAO's futarchy markets. The migration addresses three problems: persistent lack of liquidity due to uncertainty in pricing future DAO value, susceptibility to manipulation through selective cranking and wash trading, and high state rent costs (3.75 SOL per market pair, 135-225 SOL annually).
The AMM design uses liquidity-weighted price over time as the settlement metric, with 3-5% fees to incentivize liquidity provision and discourage manipulation. Implementation includes features to permissionlessly pause swaps after verdict and close AMMs to recover state rent.
Market Data
- Outcome: Passed
- Proposer: joebuild (program), 0xNalloK (frontend)
- Created: 2024-01-24
- Completed: 2024-01-29
- Budget: 400 META on passing, 800 META on completion (1,200 META total)
- Timeline: 3 weeks program development + 1 week review
Technical Scope
Program changes:
- Write basic AMM tracking liquidity-weighted average price over lifetime
- Incorporate AMM into autocrat + conditional vault
- Feature to permissionlessly pause AMM swaps and return positions after verdict
- Feature to permissionlessly close AMMs and return state rent SOL
- Loosen time restrictions on proposal creation (currently 50 slots)
- Auto-revert to fail if proposal instruction fails after X days
Frontend integration:
- Majority of frontend changes by 0xNalloK
- Mainnet testing on temporary subdomain before migration
Significance
This represents MetaDAO's first major architectural change to its futarchy implementation after initial launch. The migration from CLOB to AMM reflects lessons learned about liquidity requirements in conditional markets and demonstrates the DAO's willingness to iterate on core mechanisms.
The proposal explicitly prioritizes liquidity over other considerations (like one-sided liquidity provision), indicating that trading volume and manipulation resistance were the binding constraints on governance quality.
State rent economics (135-225 SOL annually) provided additional justification, showing how Solana-specific costs influence mechanism design choices.
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 — mechanism being modified
- futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements — problem being addressed
- futarchy-daos-require-mintable-governance-tokens-because-fixed-supply-treasuries-exhaust-without-issuance-authority-forcing-disruptive-token-architecture-migrations — related infrastructure concern