Political bettors are flocking to crypto-powered prediction markets, betting on outcomes like Vice President Kamala Harris's potential running mate.
MetaDAO, a governance experiment on Solana, takes this concept further, raising millions from venture capitalists who believe in market-based decision-making.
VC Investment and Futarchy Concept
Paradigm led a $2.2 million funding round in MetaDAO, which is developing governance structures based on market forces, known as futarchy.
Proponents argue that market participants make more informed decisions than traditional political methods.
Rising Popularity of Prediction Markets
The 2024 elections have highlighted the surge in crypto prediction markets, with Polymarket reaching nearly $90 million in open interest.
MetaDAO's founder, Proph3t, likens these markets to a "truth machine" for decision-making, gaining an edge in fundraising.
Paradigm's Involvement
Founded by Fred Ehrsham of Coinbase, Paradigm supports prediction markets and holds 14.6% of MetaDAO's tokens.
The firm sees potential in these markets for hedging political risks.
Futarchy in Action
MetaDAO's futarchy system uses its META token to determine outcomes, where proposals pass if the "pass" market value exceeds the "fail" market.
This approach differs from traditional DAOs, allowing anyone with funds to influence decisions directly.
Community Engagement and Partnerships
MetaDAO has gained traction in the Solana community and partnered with other projects like Drift, using its tech for grant allocation.
The positive reception suggests thoughtful community involvement in spending and governance.
ZeZheng
Coinlive