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Wednesday Feb 21st 2018

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Definition of "Futarchy"

A governance mechanism originally proposed by Robin Hanson for managing political organizations, but which is actually extremely applicable for DOs and DAOs: rule by prediction market. The action that the market predicts will have the best results, as judged by a token’s high price on its market, is the action that will be taken. This provides another, autonomous mechanism for selecting for and simultaneously rewarding expert opinion.

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