Futarchy
Futarchy is a form of government proposed by economist Robin Hanson. It involves elected officials defining the measure of the nation's well-being and using prediction markets to determine which policies will have the most positive effects source. In traditional Democracy, representatives elected through a process define and manage the welfare of the state. In Futarchy, the policies to be implemented to achieve the goals are determined by market speculators and participants source. The premise is that the Betting Market surpasses the expertise of specialists. Vitalik is known to have an affinity for prediction markets source. The ultimate goal is to "make x into y by z," which is voted on through traditional methods, while the policies are entrusted to market speculators source. In Futarchy, instead of voting for means, as in traditional systems, Futarchy allows voting for goals. For example, a policy proposal could be "Provide a 10,000 yen subsidy to those with an annual income below XXX." This is a reasonable example of voting for goals source. The criteria (2% unemployment rate), duration, and field (unemployment rate in Singapore) are selected. A policy proposal, labeled as "X," is presented, and {Market 1} offers the price of "success", while {Market 2} presents the price of 'failure'. If {Market 1} exceeds the price before the market closes, the policy is implemented. At this point, transactions in {Market 2} are refunded. Those who supported the winning side based on their holdings in the policy's success receive rewards if the proposal is verified over time and has a real impact on the initial success by the specified deadline source. This system brings several benefits to DAOs. It becomes difficult for executives managing funds to deceive organizations and society for short-term gains. Governance can become fundamentally open and transparent source.