MetaDAO is a decentralized autonomous organization (DAO) that utilizes the concept of futarchy. Futarchy is a system where an organization is governed by a market. ^[1][2]

History

Futarchy

Futarchy is a form of government proposed by economist Robin Hanson, in which elected officials define measures of national well-being, and prediction markets are used to determine which policies will have the most positive effect. It was named by The New York Times as a buzzword of 2008. ^[3]

Futarchy uses prediction markets to guide decision-making. Instead of directly voting on policies, participants bet on the potential outcomes of proposed actions. The market then aggregates these bets, collectively forecasting the outcomes. Meta-DAO applies this concept with conditional tokens, which represent bets on specific policy outcomes. ^[3]

Overview

MetaDAO was launched by pseudonymous founder Proph3t^[6] on November 8, 2023, with an airdrop to ~65 people and a treasury of $10,000. ^[4][5]

"I am as convinced as ever that this is an experiment worth conducting. For that cosmic flash of the pan that I’m given to live, I can think of no more glorious task than improving human coordination.

And futarchy, dreamed up by Robin Hanson but put into practice by us, feels like it has a decent chance of doing so. By participating in the Meta-DAO, you and I have the opportunity to contribute to something much greater than ourselves: the ascent of humankind." - founder Proph3t wrote in a blog^[7]

MetaDAO is an experiment exploring the potential of futarchy in decentralized governance. Although challenges exist, the potential benefits — aligning incentives, aggregating wisdom, and fostering long-term thinking — make it a model for exploring alternative pathways towards more effective and efficient decision-making. ^[3]

MetaDAO is a multifaceted project building an entire open metaverse ecosystem. Its core concepts include;

Open Metaverse

MetaDAO aims for an open and permissionless metaverse infrastructure accessible to anyone and built on decentralized technologies. ^[3]

Decentralized Governance

The DAO aspect empowers community members to participate in decision-making through token-based voting mechanisms. ^[3]

Multi-Layer Ecosystem

MetaDAO encompasses various layers including Metacraft - a browser-based virtual world builder for constructing immersive experiences, Metaverse NFTs - representing virtual land, avatars, and in-game items within the Metacraft world, MetaFi - Financial tools like a DEX and DAO treasury fostering economic activity within the ecosystem, and finally, Metaversity - educational initiatives and grants to promote metaverse development and adoption. ^[3]

Funding

In August 2024, MetaDAO raised a total of $2.2 million led by Paradigm to fund operations. The round came as the 2024 elections were putting a spotlight on crypto's popular prediction markets. The spotlight around prediction markets gave MetaDAO an edge in fundraising, Proph3t, MetaDAO's pseudonymous founder, told CoinDesk in an interview. He said his pitch to investors highlighted the similarities:

“'If we see Polymarket as a machine then it made sense to me that we’d want to use a truth machine to make decisions.'"^[8]

Technology

Meta-DAO operates on the Solana blockchain. Anyone with a compatible wallet can purchase the governance token, META. Holding more META tokens allows proposing and voting on policies through conditional tokens. These “bets” require locking up META tokens, incentivizing informed participation and alignment with long-term value. ^[3]