{"id":32271,"date":"2020-11-24T13:15:00","date_gmt":"2020-11-24T11:15:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=32271"},"modified":"2025-08-28T07:52:02","modified_gmt":"2025-08-28T04:52:02","slug":"gnosis-to-launch-futarchy-based-dao-tied-to-prediction-markets","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/gnosis-to-launch-futarchy-based-dao-tied-to-prediction-markets\/","title":{"rendered":"Gnosis to launch futarchy-based DAO tied to prediction markets"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Gnosis team announced the launch of GnosisDAO, based on the ideas of futarchy within a decentralized autonomous organization (DAO). It posits that any protocol change becomes a prediction market, acting as a barometer of assessment and influencing users&#8217; ultimate decision.<\/span><!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Announcing GnosisDAO<\/p>\n<p>The prediction market-driven collective<a href=\"https:\/\/t.co\/NMgdIEygLc\">https:\/\/t.co\/NMgdIEygLc<\/a><\/p>\n<p>\u2014 Gnosis (@gnosisPM) <a href=\"https:\/\/twitter.com\/gnosisPM\/status\/1330906217007509507?ref_src=twsrc%5Etfw\">November 23, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span style=\"font-weight: 400;\">The futarchy model was first described<\/span><a href=\"http:\/\/mason.gmu.edu\/~rhanson\/futarchy.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\"> by economist Robin Hanson of George Mason University<\/span><\/a><span style=\"font-weight: 400;\">. It envisions a two-stage voting process, where initially there is support\/opposition to an initiative, and then \u2014 a vote on the set of actions required to implement it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the second stage, two prediction markets are created, each containing a single asset: one market corresponding to adoption of the measure, and the other \u2014 its rejection.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the proposal is adopted, all trades on the rejection market are cancelled, and on the acceptance market after some time each user receives a certain amount of tokens, based on the futarchy-chosen success metric. And vice versa \u2014 if the proposal is rejected.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Markets can operate for some time, with the policy having the higher average token price ultimately winning. A similar algorithm was described by Vitalik Buterin in 2014.<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">\u201cUsers can influence [the vote] with their trading decisions: will they buy or sell the Gnosis token (GNO) if the proposal is implemented. In essence, this is a direct way to obtain the market&#8217;s &#8216;feedback on the proposal'&#8221;<\/span><span style=\"font-weight: 400;\">, \u2014 explained CoinDesk in an interview with<\/span><a href=\"https:\/\/www.coindesk.com\/gnosis-dao-futarchy-prediction-markets-governance\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">CoinDesk<\/span><\/a><span style=\"font-weight: 400;\"> by Gnosis cofounder Martin Kepplmann.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">According to him, DAO voting proposals can be diverse: changes to the roadmap, reserve management, launching new initiatives, and funding public goods. This form opens broad space for collaboration and experimentation, he added.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The team will allocate for such markets from the GnosisDAO reserves 150 000 ETH and 8 000 000 GNO with an eight-year vesting period. In the initial phase \u2014 1 000 ETH and 20 000 GNO.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The DAO will launch with three proposals:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the creation of the second version of the Gnosis protocol;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the creation of a governance token for the DAO named SAFE;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the execution of an airdrop amounting to 5% of GNO for active participants in GnosisDAO.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Earlier in July, the Gnosis protocol launched the Omen prediction markets platform.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In September, the cryptocurrency hedge fund Arca <a href=\"https:\/\/forklog.com\/en\/news\/arca-fund-urges-gnosis-developers-to-buy-back-tokens-from-investors\"><span style=\"font-weight: 400;\">proposed<\/span><\/a><span style=\"font-weight: 400;\"> to the Gnosis team to return funds to investors after reviewing the results of its activity.<\/span><\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/vk.com\/forklogcom\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">VK<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Gnosis team announced the launch of GnosisDAO, based on the ideas of futarchy within a decentralized autonomous organization (DAO). It posits that any protocol change becomes a prediction market, acting as a barometer of assessment and influencing users&#8217; ultimate decisions.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[80,1443,1595],"class_list":["post-32271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dao","tag-gnosis","tag-prediction-markets"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/32271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=32271"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/32271\/revisions"}],"predecessor-version":[{"id":32272,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/32271\/revisions\/32272"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=32271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=32271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=32271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}