GnosisDAO receives the support of 150,000 ETH and Eight million gnosis (GNO).
Gnosis, an Ethereum-based predictive marketplace platform, announced GnosisDAO, its own Decentralized Autonomous Organization (DAO). It is a type of digital organization that works based on a system of rules encoded through smart contracts.
According to information published on the company’s blog on November 23, the plan with the new DAO is to allow Gnosis users to vote on the governance and development system of the platform.
Early proposals for the launch of the DAO include the distribution of a one-time reward in GNO for the first active participants, the introduction of a SAFE token for governance, and the development of the Protocol for Gnosis Improvement Proposals (GIP).
In this way, predictive markets will be created using the Gnosis Safe Multisig platform, funded at the beginning with 1,000 ethers (ETH) and 20,000 gnosis (GNO) from the Gnosis treasury. In the end, GnosisDAO will have effective control over 150,000 ETH and 8 million GNO, the company clarifies.
The note also states that the idea is to decentralize the project in a more progressive way, not only through community participation but also with the use of already created products. The process will begin with the technical and governance layers for the project’s products in a web 3.0 ecosystem.
Governance based on predictive markets
Among the notable novelties of the plan is the fact that the company will base its DAO on the concept of futarchy (futarchy or governance by predictive markets). It is a model formulated in 2000 by the American economist Robin Hanson, from George Mason University, in the USA.
According to Hanson’s manifesto, in the futarky people vote for values, but they bet on beliefs. “Elected representatives would formally define and manage a measure of national welfare a posteriori, while market speculators would say which policies they hope will increase national welfare,” explains the academic.
Thus, the futarky proposes that the effectiveness of democratically elected officials or the policies to be implemented should be tested in prediction markets. These markets are seen as generating a barometer of policy success or failure that voters can refer to increase their decision making.
The Gnosis team is aware that the mechanics and rule-setting for decentralized futarchy will take time, so the initiative will begin in the form of a minimal viable futarchy network. Since voters can go against the direction of the markets, GnosisDAO will launch on a gentler incline that may tighten as the DAO grows.
“GnosisDAO will use prediction market technology to transparently guide development, support, and governance decisions,” they say.
They also state that each proposal must go through three essential phases. The process will begin with a post on the Gnosis Forum. The final phase will use the Gnosis Impact application and an instant GnosisDAO survey. At this stage, the prediction markets will show the impact of the projected price in GNO.
Gnosis has so far been characterized by the constant development of predictive markets. Last April the startup launched a predictive platform dedicated to events related to the coronavirus pandemic, where users bet on information related to the virus.
By: Jenson Nuñez.
