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Futarchy as Trustless Joint Ownership

Kevin Heavey·October 28, 2024·Blog
futarchy makes governance attacks self-defeating by forcing attackers to pay fair value

Why It's Worth Reading

Argues that asset futarchy solves trustless joint ownership by making treasury raids economically irrational: exploiting minority shareholders requires buying their tokens above fair value while simultaneously depressing conditional market prices, making the attack self-defeating by construction. Examines MetaDAO's implementation and Proposal 6, where an attempted governance attack was repelled through this mechanism. Also addresses limitations including soft rug pulls, settlement price complexity, and regulatory constraints around insider trading.

Some technical background helpful

Concepts

Platforms mentioned: NEW: MetaDAO

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