Gautham💤 pfp
Gautham💤
@gautham
Last weekend someone paid just 5 ETH (~$10k) to control $6.5M worth of Arbitrum votes. That's more voting power than Wintermute and L2Beat combined. The token voting model is fundamentally broken. But there's a solution that makes vote buying impossible 🧵
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Gautham💤 pfp
Gautham💤
@gautham
1/ Here's what happened: Guy spent $10k on Lobby - Got control of 19.3M ARB votes - Used it to elect someone to committee - That position pays 66 ETH - 13x return on investment Would you trust a system where votes are this cheap?
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Gautham💤 pfp
Gautham💤
@gautham
2/ The dirty secret of governance: Token voting was always a hack. It gives you two terrible choices: - Rich whales control everything - OR - Votes get bought for pennies on the dollar There has to be a better way.
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Gautham💤 pfp
Gautham💤
@gautham
3/ Enter Futarchy: Instead of voting or buying votes, you BET on outcomes. Want to make a governance decision? - Set a measurable goal (token price, revenue, etc) - Let people bet which option achieves it - Execute what the market predicts will work
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Gautham💤 pfp
Gautham💤
@gautham
4/ Why this kills vote buying: Try manipulating a prediction market: - You need massive capital - Market fights back - You lose money if wrong - No guaranteed return That 13x governance hack? Impossible under futarchy.
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Gautham💤 pfp
Gautham💤
@gautham
5/ Look at what happened at MetaDAO: Someone tried testing their futarchy market with a controversial proposal to mint tokens at below market price. Result? - Generated $380k+ in trading volume - Market naturally defended itself - Bad proposal failed - System worked as designed
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Gautham💤 pfp
Gautham💤
@gautham
6/ The economics are beautiful: Can't buy votes - Must risk real money - Market punishes bad actors - Experts naturally have more influence - Decisions based on expected outcomes No more cheap governance hacks.
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Gautham💤 pfp
Gautham💤
@gautham
7/ This gets even better: In futarchy: - Manipulation gets expensive fast - Good predictors gain influence naturally - Incentives align with outcomes - No more plutocracy OR vote selling It's governance that actually works.
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Gautham💤 pfp
Gautham💤
@gautham
8/ We're seeing early adoption now: - @Optimism building futarchy infrastructure - @MetaDAO proving it works - Multiple DAOs exploring implementation - @Polymarket and @Truemarketsorg showing prediction markets work The revolution is already happening.
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Gautham💤 pfp
Gautham💤
@gautham
9/ The future of governance isn't about who has the most tokens or who can buy the most votes. It's about creating systems where good decisions naturally emerge from market forces.
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Leo pfp
Leo
@leohenkels
Ahh another futarchy pilled caster - welcome ser.
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