teleo-codex/domains/internet-finance/futarchy-clob-state-rent-costs-135-225-sol-annually-for-metadao-proposal-volume.md

type	domain	description	confidence	source	created
claim	internet-finance	At 3-5 proposals per month, CLOB-based futarchy markets cost MetaDAO 135-225 SOL annually in non-recoverable state rent	likely	joebuild/MetaDAO, Futardio AMM Proposal, 2024-01-24	2024-03-11

Futarchy CLOB state rent costs 135-225 SOL annually for MetaDAO at current proposal volume

Central Limit Order Book implementations of futarchy require 3.75 SOL in state rent per pass/fail market pair, which cannot be recouped under the existing Autocrat architecture. At MetaDAO's documented proposal volume of 3-5 proposals per month, this translates to 135-225 SOL annually ($11,475-$19,125 at January 2024 prices).

This cost structure creates a direct economic incentive to migrate from CLOBs to AMMs, independent of governance or manipulation considerations. The state rent burden scales linearly with proposal volume, making it particularly punitive for high-frequency futarchy implementations. The proposal notes that "there are ways to recoup openbook state rent costs, though it would require a migration of the current autocrat program," suggesting the non-recoverability is an implementation limitation rather than a fundamental CLOB property. However, the migration cost to enable rent recovery may exceed the AMM migration cost, making AMM adoption the more economical path.

Evidence

• "Pass/fail market pairs cost 3.75 SOL in state rent, which cannot currently be recouped" (MetaDAO AMM proposal CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG)
• "If we average 3-5 proposals per month, then annual costs for market creation is 135-225 SOL, or $11475-$19125 at current prices"
• "AMMs cost almost nothing in state rent"
• Feedback during proposal: "there are ways to recoup openbook state rent costs, though it would require a migration of the current autocrat program"
• MetaDAO proposal volume: 3-5 proposals per month (self-reported in proposal)

Limitations

• Calculation based on MetaDAO's specific proposal volume; generalizability to other futarchy implementations depends on their governance frequency
• SOL price ($11,475-$19,125 range) is time-specific to January 2024; current cost in USD would differ
• Non-recoverability is specific to current Autocrat v0.1 implementation; future versions may enable rent recovery

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Relevant Notes:

• MetaDAO is the futarchy launchpad on Solana where projects raise capital through unruggable ICOs governed by conditional markets creating the first platform for ownership coins at scale.md
• domains/internet-finance/_map

Topics:

• core/mechanisms/_map