(2020-11-23) Announcing GnosisDAO
Announcing GnosisDAO. Gnosis was founded in 2015 with the aim to build prediction markets that enable worldwide access to accurate information. Five years later, our technology powers decentralized prediction market platforms¹, and we’re ready to embark on the next giant leap of the journey: GnosisDAO.
This form of governance known as “futarchy,” or governance by prediction markets, is at the heart of why they are important to us at Gnosis.
To date, our core product suite has addressed the issues of prediction market conditionality, liquidity, and fund management.
addition to developing our core products, we have substantially supported infrastructure required for prediction markets. This includes utilizing:
Reality.eth, a crowd-sourced oracle;
Kleros, a dispute resolution layer;
xDai, an Ethereum sidechain designed for fast and inexpensive transactions;
OpenEthereum, the fast, light, and robust client for Ethereum;
Last but far from least, the DXdao organization, a successful proof-of-concept project to enable decentralized finance projects to exit to community governance.
With the rise of decentralized finance on Ethereum, we’ve seen users share in the growth of decentralized protocols.
Gnosis has taken a different approach to a similar end — with decentralization maximalism at its heart from the beginning. In 2019, we initialized the DXdao, a decentralized organization with over 400 stakeholders that develops, governs, and grows decentralized finance protocols and products. After initializing the DXdao, Gnosis stepped back,
Today, the DXdao describes itself as a sovereign collective, and they maintain leading decentralized finance applications on Ethereum, including Omen Prediction Markets and the Mesa trading dapp.
While the history of electronic prediction markets for corporate governance dates back decades, GnosisDAO’s application of permissionless prediction markets to organizational governance will set precedents for their use
Let’s dive into an overview of how the futarchy mechanism works.
Every proposal begins as a post on the Gnosis Forum, and every successful proposal must pass through three phases.
The GnosisDAO governance process is primarily conducted using the GnosisDAO category on the Gnosis Forum.
New GnosisDao Bets on 'Futarchy,' a Prediction-Market Governance Model - CoinDesk
Gnosis CEO Martin Köppelmann told CoinDesk the DAO’s voting proposals "can be really wide-reaching: product roadmap decisions, treasury management, starting new ventures, funding public goods. DAOs open up a large space for collaboration and experimentation."
One of GnosisDAO’s key marketing points is its integration with the Gnosis prediction markets.
whether traders overall think it’s good or bad for Gnosis
This governance model, called futarchy, was formulated by George Mason University economist Robin Hanson
People can influence [a vote] with their trading decision. As a new proposal is on the table, people can already signal whether they would buy or sell the token (GNO) if the proposal was implemented.