teleo-codex/decisions/internet-finance/drift-futarchy-proposal-welcome-the-futarchs.md

type	entity_type	name	domain	status	parent_entity	platform	proposer	proposal_url	proposal_date	resolution_date	category	summary	tracked_by	created
decision	decision_market	Drift: Futarchy Proposal - Welcome the Futarchs	internet-finance	passed	drift	futardio	HfFi634cyurmVVDr9frwu4MjGLJz9XbAJz981HdVaNz	https://v1.metadao.fi/drift/trade/9jAnAupCdPQCFvuAMr5ZkmxDdEKqsneurgvUnx7Az9zS	2024-05-30	2024-06-02	grants	50,000 DRIFT incentive program to reward early MetaDAO participants and bootstrap Drift Futarchy proposal quality through retroactive rewards and future proposal creator incentives	rio	2026-03-11

Drift: Futarchy Proposal - Welcome the Futarchs

Summary

This proposal allocated 50,000 DRIFT tokens to bootstrap participation in Drift Futarchy through a three-part incentive structure: retroactive rewards for early MetaDAO participants (12,000 DRIFT), future proposal creator rewards (10,000 DRIFT for up to 10 proposals over 3 months), and active participant rewards (25,000 DRIFT pool). The proposal passed on 2024-06-02 and established a 2/3 multisig execution group to distribute funds according to specified criteria.

Market Data

• Outcome: Passed
• Proposer: HfFi634cyurmVVDr9frwu4MjGLJz9XbAJz981HdVaNz
• Proposal Account: 9jAnAupCdPQCFvuAMr5ZkmxDdEKqsneurgvUnx7Az9zS
• DAO Account: 5vVCYQHPd8o3pGejYWzKZtnUSdLjXzDZcjZQxiFumXXx
• Autocrat Version: 0.3
• Duration: 2024-05-30 to 2024-06-02 (3 days)

Allocation Structure

• Retroactive Rewards (12,000 DRIFT): 32 MetaDAO participants with 5+ conditional vault interactions over 30+ days, tiered by META holdings (100-400 DRIFT per participant) plus AMM swappers (2,400 DRIFT pool)
• Future Proposal Incentives (10,000 DRIFT): Up to 5,000 DRIFT per passing proposal honored by security council, claimable after 3 months
• Active Participant Pool (25,000 DRIFT): Split among sufficiently active accounts, criteria finalized by execution group, claimable after 3 months
• Execution Group (3,000 DRIFT): 2/3 multisig (metaprophet, Sumatt, Lmvdzande) to distribute funds

Significance

This proposal demonstrates that futarchy implementations require explicit incentive design to bootstrap participation and proposal quality, not just the core conditional market mechanism. The retroactive reward structure targets demonstrated engagement (5+ interactions over 30+ days) rather than simple token holdings, and the future proposal creator rewards create explicit financial incentives for well-formulated proposals. The use of a multisig execution group with discretion over "sufficiently active" criteria shows governance flexibility within the futarchy framework.

Relationship to KB

• drift - governance decision establishing incentive program
• metadao - source of participant data via Dune dashboard
• 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 context
• MetaDAOs-futarchy-implementation-shows-limited-trading-volume-in-uncontested-decisions - participation bootstrapping challenge

Full Proposal Text

Overview

This proposal requests 50,000 DRIFT to carry out an early Drift Futarchy incentive program (max of 10 proposals / 3 months).

This proposal is meant to signal rewards for strong forecasters in futarchic markets by:

• Rewarding early and active participants of MetaDAO with tokens to participate in Drift Futarchy (via the "endowment effect")
• Incentivizing future well-formulated proposals and activity for Drift Futarchy

This proposal's outline is fulfilled over months by the executor group, acting as a 2/3 multisig, defined below.

Implementation

Retroactive Reward:

Using the following dune dashboard data as reference: https://dune.com/metadaohogs/themetadao (with May 19th, 2024 UTC as a cutoff date)

• METADAO activity
• META token holdings

Among those who interacted with metadao's conditional vaults on at least 5 occassions over more period of 30 days, will recieve a retroactive reward as follows:

• < 1 META, 100 DRIFT

• = 1 META, 200 DRIFT

• = 10 META, 400 DRIFT

This code produces the following list of 32 MetaDAO participants who are qualified: https://gist.github.com/0xbigz/056d3f7780532ffa5662410bc49f7215

(9,600 DRIFT)

Additionally, all MetaDAO AMM swapers interacters https://dune.com/queries/3782545 who aren't included above should split remaining.

crude snapshot: https://gist.github.com/0xbigz/adb2020af9ef0420b9026514bcb82eab

(2,400 DRIFT)

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Future Incentive:

The following applies to the lengthlier of next 10 proposals or 3 month time frame

Additionally, excluding this instance, passing proposal that are honored by security council can earn up to 5000 DRIFT for the proposer(s), each claimable after 3 months after. (if successful proposals exceed two, executor group can decide top N proposals to split) (10,000 DRIFT)

For accounts sufficiently active during the period, a pool of 20,000 DRIFT will be split and claimable after 3 months. To filter for non organic activity, the exact criteria for this shall be finalized by the execution group. (25,000 DRIFT)

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Execution Group:

A 2/3 multisig to escrow and distribute funds based on outline. After successful completion of this proposal, they can distribute their allocation as they see fit.

In the event of uncertainty or excess budget, funds shall be returned to originating wallet or Drift Futarchy DAO treasury. (3,000 DRIFT)

• metaprophet
• Sumatt
• Lmvdzande