Bankless How Futarchy Ends the Rug Pull Era | Felipe Montealegre & Proph3t
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Oct 20, 2025 Felipe Montealegre, an investor at Thea Research and futarchy advocate, joins Proph3t, co-founder of MetaDAO, to explore innovative governance solutions in crypto. They discuss how futarchy can prevent token rug pulls by shifting governance from voting to market trading. The conversation covers the importance of liquidity, the mechanics of conditional trades, and the concept of ownership coins designed to protect investors. They also tackle regulatory challenges and envision a future where futarchy unlocks significant on-chain capital flows, making crypto more investable.
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Markets Decide Governance
- Futarchy replaces voting with markets that trade on outcomes to decide governance.
- Markets reveal which proposal will likely maximize token price before a decision is made.
Conditional Markets Signal Value
- Futarchy runs conditional markets for each proposal and finalizes trades for the realized outcome.
- Time-weighted average prices across conditional markets determine which action maximizes token value.
Let Informed Traders Drive Outcomes
- Let people with the best information trade decision markets because they profit when correct.
- Use market profits and losses to align incentives and surface informed views.