Howdy!
If you are reading this I am somewhere in New Hampshire. Hopefully, a bear is not threatening to eat me.
New Hampshire State Motto: “Live Free or Die,” We’ll dive in to a market-based, entirely democratic governance system currently being used by Solana. Enjoy your Friday!
MetaDAO pioneers “futarchy” Governance on Solana
Solana is the home of native token airdrops, which have been happening for several months. These airdrops are often accompanied by governance processes to be used with the new tokens. Even at their best, DAO governance is susceptible to low participation and misaligned incentive structures.
Solana MetaDAO is testing out a new paradigm for crypto governance — so-called futarchy.
Futarchy allows people to trade governance options instead of voting. A market will decide how to govern protocols. MetaDAO, Future DAO” Drift Protocol Futarchy’s Governance page has all pages in live action.
MetaDAO’s pseudonymous creator, Proph3tI was told by that they had been a former developer in Ethereum The problem of DeFi was exacerbated by the misaligned incentive structures that muddled decision-making processes.
Proph3t revealed that they learned about futarchy from a YouTube video, and then decided to implement futarchic government in cryptocurrency. Futarchy is a concept introduced by an economics professor Robin Hanson. They replied to my question about the future of Solana being governed by futarchy. “everything is governed by futarchy.”
Proph3t started coding MetaDAO on Solana in January 2023, which they believed was in a better position at that time than most people realized. Platform launched in November of 2023, and now is raising funds. The platform launched in November 2023 and is now raising a funding round. Pantera Capital A proposal was made to purchase some MetaDAO native tokens. However, traders did not vote for the measure.
The futarchic proposal is a way to set a price on what the market believes the native token of the DAO will be if it passes or fails. The traders can bet on the prices and decide whether the proposal will succeed or fail based on the expected price of the token. If the proposal is approved, the traders will be able to trade the tokens on the “pass” The trades of the side on one end will be completed, but those of the “fail” Trades will be canceled on both sides.
Say, for example, that I suggest to the fictional Lightspeed DAO everyone share the Lightspeed Newsletter with a friend. According to the market, if the proposal was to be approved, the LIGHTSPEED fictional token would rise from $1 to $10. The market predicts that if the proposal fails, LIGHTSPEED will only rise to $8. Market believes that everyone who shares the newsletter is better for LIGHTSPEED’s token price. All traders who bet against the proposal would receive their losses back. Those who bet in favor of the proposal would have unrealized gains and/or losses depending on if they were right or wrong.
I asked how one could build a market that would only reflect the effects of a proposal for governance. Proph3t proposed making the proposal time as short as you can to limit the factors that affect the market.
It all sounded like nerdy sniping. I asked Proph3t whether there was any way to make futarchy digestible by normies.
“Well, I would push back on the idea that it needs to necessarily be very digestible. The goal of any decision making process would be to make good decisions, not necessarily to incorporate the most people in that decision making process,” Proph3t said.
— Jack Kubinec
Zero In
Iggy Azalea is promoting her $MOTHER memecoin on Iggy’s X.com account.
The market capitalization of the memecoin has increased since its launch. But is it a token that attracts new users or just a toy for existing skeptics in the industry?
Blockworks Research data shows that the average transaction fee for users who transacted 1 to 5 times during the time period has risen sharply. The day-to-day jump was from $0.003 to $0.016 — a more than 430% increase.
Do you think this is a wave a Solana beginners trying to obtain transaction priority or those who are trying to charge higher fees as a result of a failure to complete a purchase? The answer is difficult to determine, but inquiring minds would like to find out.
It doesn’t matter what is happening, a celebrity memecoin could be involved.
— Michael McSweeney
The Pulse
Andrew Tate announced that he wanted to crash Solana before 10am.
It is not clear how or why he intends to accomplish this. It seems from a deeper look at his tweets that the real meaning is to hold and buy a few memecoins to engage in engagement farming.
Tate declared (always with capitals) to X that he was going to be at X early on Friday morning. “I WILL CRASH THE SOLANA NETWORK,” The following are some examples of how to get started: “I AM DIAMOND HANDS ALL DAY. WATCH ME.” He said he had invested over $1 million in random cryptos, and that he never intended to sell them. Tate has a lot of followers who think this is a good thing because by not selling the coins Tate offers to effectively reduce the circulation supply. The scarcity of the coins could increase demand and, therefore, price. This could be the case, or it may not.
Intermixed with his Solana tweets, Tate worked hard to stay on-brand — that brand comprising a hyper-machismo mix of racism, anti-semitism, sexism, and homophobia. Many followers did not seem to be affected, but were rather excited by the idea of having a bag pump.
Tate, like Hulk Hogan Caitlyn Jennifer, Iggy Azalea, and others, is the latest celebrity to get involved in memecoins. Most of the responses have been positive. Most people do not seem to be concerned about the character of the individual selling the coins as long they are able to buy in the speculation of an upside. It’s no wonder we call these people degens.
— Jeffrey Albus
One Good DM
Message from Proph3t, Founder of MetaDAO:
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