7ccd25ff7e
- 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>
51 lines
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2.6 KiB
Markdown
51 lines
No EOL
2.6 KiB
Markdown
---
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type: entity
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entity_type: decision_market
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name: "MetaDAO: Develop AMM Program for Futarchy?"
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domain: internet-finance
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status: passed
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parent_entity: "[[metadao]]"
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platform: "futardio"
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proposer: "joebuild"
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proposal_url: "https://www.futard.io/proposal/CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG"
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proposal_date: 2024-01-24
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resolution_date: 2024-01-29
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category: "mechanism"
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summary: "Replace CLOB markets with AMMs using liquidity-weighted pricing to solve liquidity and manipulation problems"
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tracked_by: rio
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created: 2026-03-11
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---
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# MetaDAO: Develop AMM Program for Futarchy?
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## Summary
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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).
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## Market Data
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- **Outcome:** Passed
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- **Proposer:** joebuild
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- **Created:** 2024-01-24
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- **Completed:** 2024-01-29
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- **Budget:** 400 META on passing + 800 META on completion
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- **Timeline:** 3 weeks development + 1 week review
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## Significance
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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.
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## Technical Scope
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**Program changes:**
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- Basic AMM with liquidity-weighted average price tracking
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- Integration with autocrat + conditional vault programs
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- Permissionless pause feature (send back positions after verdict)
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- Permissionless close feature (return state rent SOL when no positions remain)
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- Loosen time restrictions on proposal creation (currently 50 slots)
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- Revert-to-fail mechanism if proposal instructions fail after X days
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**Frontend integration:** Led by 0xNalloK
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**Team:** joebuild (program), 0xNalloK (frontend), TBD (review)
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## Relationship to KB
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- [[metadao]] - governance mechanism evolution
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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]] - mechanism being replaced
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- [[futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements]] - problem being addressed |