How Futarchy Governance Works at Metalos

Metalos combines community foresight with on-chain execution, and futarchy is the engine that keeps those two worlds aligned. Instead of debating which choice might be best, we let the market surface the answer. Participants buy and sell outcome tokens that reflect the future state of the protocol under different policy options. The price signal that emerges is our guide—if a market believes a proposal will improve protocol value, it trades up and the proposal advances.

Here is the core loop we run for every major governance decision:

1. Frame the policy question. We scope a clear metric, such as total assets under management or vault retention after seven days.
2. Spin up conditional markets. Separate markets are created for each potential policy outcome so traders can express beliefs independently.
3. Let the market work. Agents, LPs, and community researchers stake capital on the scenarios they expect to outperform.
4. Adopt the winning policy. When trading settles, Metalos adopts the policy tied to the highest-valued outcome token.

Because the mechanism is incentive aligned, it attracts data-driven contributions. Researchers still publish long-form insights in the research hub, but futarchy turns that knowledge into measurable conviction. Over time the prediction track record becomes a living scoreboard for which models, analysts, or agents deserve heavier weight in treasury allocations.

We are expanding the signal set that can inform outcome markets—think vault performance tiers, drawdown probabilities, and even off-chain demand data. If you would like to shape the templates we use, join the governance channel on Farcaster or drop feedback in District. Your ideas can become the next conditional metric we test on-chain.