Galaxy

Umia

Four

<div class="light-yellow-block">
 <h2 id="strong-key-takeaways-strong"><strong>Key Takeaways</strong></h2>
 <ul>
  <li><strong>Pass price finished 11% above fail.</strong></li>
  <li><strong>Only eight traders took part.</strong></li>
  <li><strong>Four team proposals, four passes.</strong></li>
  <li><strong>Anyone can check the treasury wallet.</strong></li>
 </ul>
</div>
<p>Rip Cars sells digital mystery packs backed by real Hot Wheels cars. On October 2 its team asked for $250,000 from the company treasury to buy more of them. The vote drew $9,405 of volume.</p>
<p>That makes it a useful case for how decision markets work in practice. A decision market is a market whose prices decide the outcome: traders bet on what a token would be worth if a proposal passed and if it failed, and the organisation acts on the result. MetaDAO calls the approach futarchy. <a href="https://www.galaxy.com/insights/research/conditional-markets-decision-markets-impact-markets-mainnet-umia-metadao-proof-branchmap-branchpoint-prediction-markets-futarchy" rel="noopener noreferrer nofollow">Galaxy Research counts</a> 22 decentralised autonomous organisations, or DAOs, governed entirely this way, 21 of them on MetaDAO.</p>
<h2 id="how-a-market-says-yes">How a market says yes</h2>
<p>When a proposal gathers enough stake, <a href="https://docs.metadao.fi/governance/markets" rel="noopener noreferrer nofollow">MetaDAO’s docs explain</a>, the project moves half its trading liquidity into two conditional markets: one for the token if the proposal passes and one if it fails. Traders then have three days. A conditional trade works like a normal one, except it reverts if its condition isn’t met. The docs give an example: a trader who thinks a token will reach $30 if a proposal passes buys in the pass market at $20. If the proposal fails, that trade reverts and no tokens change hands.</p>
<p>The result isn’t the last trade. MetaDAO uses a <a href="https://docs.metadao.fi/governance/twaps" rel="noopener noreferrer nofollow">time-weighted average price</a>, the price averaged over time, with recording starting only after a 24-hour delay and a limit on how fast the recorded price can move, so a brief spike can’t decide a vote.</p>
<p>Approval then depends on a hurdle. The docs list −3% for team-sponsored proposals and +3% for everyone else, on the reasoning that teams usually know more about their projects, and say the numbers are still being tuned. Rip Cars’ <a href="https://metadao.fi/decisions/cars-004" rel="noopener noreferrer nofollow">proposal</a> was team-sponsored. Its pass price finished at $0.1521 against $0.1366 for fail, about 11% higher, so it would have cleared even the hurdle an outsider faces.</p>
<div style="margin: 28px 0;">
 <p style="margin: 0 0 4px; font-weight: bold;">How far past the bar it landed</p>
 <p style="margin: 0 0 14px; font-size: 13px; color: #64748b;">Pass price relative to fail price, final time-weighted averages</p>
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  <div style="position: absolute; left: 81.5%; top: 0; transform: translateX(-50%); text-align: center; font-size: 13px; font-weight: bold; color: #15803d; line-height: 1.3;">
   Rip Cars +11.3% <br> ▼
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   <div style="width: 30%; background: #fde68a;"></div>
   <div style="width: 60%; background: #bbf7d0;"></div>
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  <div style="position: relative; height: 24px; font-size: 12px; color: #475569;"><span style="position: absolute; left: 0;">−5%</span><br><span style="position: absolute; left: 10%; transform: translateX(-50%);">−3%</span><br><span style="position: absolute; left: 25%; transform: translateX(-50%);">0</span><br><span style="position: absolute; left: 40%; transform: translateX(-50%);">+3%</span><br><span style="position: absolute; right: 0;">+15%</span>
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  <div><span style="color: #ef4444;">■</span> Fails for every proposal
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  <div><span style="color: #f59e0b;">■</span> Passes only if team-sponsored
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  <div><span style="color: #22c55e;">■</span> Passes for every proposal
  </div>
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 <p style="margin: 8px 0 0; font-size: 13px; color: #64748b;">Source: MetaDAO proposal CARS-004 and MetaDAO docs. Hurdles are the docs’ defaults.</p>
</div>
<h2 id="four-proposals-four-passes">Four proposals, four passes</h2>
<p>The inventory request was Rip Cars’ fourth team-sponsored proposal on MetaDAO, and all four passed. Participation fell each time.</p>
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  <p style="margin: 0 0 6px; font-size: 12px; color: #64748b;">CARS-001 · AUG 14</p>
  <p style="margin: 0 0 12px; font-size: 14px; min-height: 76px;">Pays 50,000 USDC in extra launch capital for inventory, office setup and accounting.</p>
  <p style="margin: 0 0 8px; font-size: 12px; font-weight: bold; color: #15803d;">PASSED</p>
  <p style="margin: 0; font-size: 26px; font-weight: bold; line-height: 1;">102</p>
  <p style="margin: 2px 0 8px; font-size: 12px; color: #64748b;">traders</p>
  <p style="margin: 0; font-size: 14px;">$25K volume</p>
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 <div style="flex: 0 0 230px; padding: 16px; border: 1px solid #cbd5e1; border-radius: 6px;">
  <p style="margin: 0 0 6px; font-size: 12px; color: #64748b;">CARS-002 · SEPT 2</p>
  <p style="margin: 0 0 12px; font-size: 14px; min-height: 76px;">Removes the 18-month cliff on the team’s token package and caps monthly sales at $100,000 or 5%.</p>
  <p style="margin: 0 0 8px; font-size: 12px; font-weight: bold; color: #15803d;">PASSED</p>
  <p style="margin: 0; font-size: 26px; font-weight: bold; line-height: 1;">21</p>
  <p style="margin: 2px 0 8px; font-size: 12px; color: #64748b;">traders</p>
  <p style="margin: 0; font-size: 14px;">$18.9K volume</p>
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 <div style="flex: 0 0 230px; padding: 16px; border: 1px solid #cbd5e1; border-radius: 6px;">
  <p style="margin: 0 0 6px; font-size: 12px; color: #64748b;">CARS-003 · SEPT 25</p>
  <p style="margin: 0 0 12px; font-size: 14px; min-height: 76px;">Mints and sells up to 12.9 million new CARS to raise capital for inventory and growth.</p>
  <p style="margin: 0 0 8px; font-size: 12px; font-weight: bold; color: #15803d;">PASSED</p>
  <p style="margin: 0; font-size: 26px; font-weight: bold; line-height: 1;">9</p>
  <p style="margin: 2px 0 8px; font-size: 12px; color: #64748b;">traders</p>
  <p style="margin: 0; font-size: 14px;">$61.8K volume</p>
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 <div style="flex: 0 0 230px; padding: 16px; border: 2px solid #f59e0b; border-radius: 6px; background: #fffbeb;">
  <p style="margin: 0 0 6px; font-size: 12px; color: #64748b;">CARS-004 · OCT 2</p>
  <p style="margin: 0 0 12px; font-size: 14px; min-height: 76px;">Unlocks $250,000 from the treasury to expand inventory and restock the gacha machines.</p>
  <p style="margin: 0 0 8px; font-size: 12px; font-weight: bold; color: #15803d;">PASSED</p>
  <p style="margin: 0; font-size: 26px; font-weight: bold; line-height: 1;">8</p>
  <p style="margin: 2px 0 8px; font-size: 12px; color: #64748b;">traders</p>
  <p style="margin: 0; font-size: 14px;">$9.4K volume</p>
 </div>
</div>
<p style="margin: -10px 0 24px; font-size: 13px; color: #64748b;">Source: <a href="https://metadao.fi/companies/ripcars" rel="noopener noreferrer nofollow">MetaDAO, Rip Cars decisions</a>.</p>
<p>The proposals read as one story. The second loosened the founders’ lock-up. The third authorised a sale of new tokens, and a week later the $250,000 request cited a new OTC round, a private sale of tokens.</p>
<p>The size of the ask matters too. Rip Cars’ plan sets a $40,000 monthly allowance so the team can buy inventory without a vote, which makes $250,000 about six months of it. It is also the same as the entire $250,000 the company raised in its token sale, a plan that put about 20.4%, roughly $51,000, toward inventory. Rip Cars’ goal, it says, is at least a 5% gross margin on every gacha pull. That is the yardstick for whether the new stock pays off.</p>
<h2 id="how-thin-is-thin">How thin is thin?</h2>
<p>Eight traders and $9,405 of volume is about 3.8% of the $250,000 requested. It is also typical. On MetaDAO’s <a href="https://metadao.fi/decisions" rel="noopener noreferrer nofollow">decisions page</a>, the 22 resolved proposals launched between September 10 and October 14 drew a median of 4.5 participants. Credible moved $500,000 from its treasury with six. Sanctum’s vote on burning 25% of its token supply drew 35.</p>
<div style="margin: 28px 0;">
 <p style="margin: 0 0 4px; font-weight: bold;">Participants per resolved decision, 22 proposals</p>
 <p style="margin: 0 0 14px; font-size: 13px; color: #64748b;">Each dot is one proposal. Median: 4.5 participants.</p>
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   ⋯
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 <div style="display: flex; justify-content: center; gap: 8px; margin-top: 4px; font-size: 12px; color: #475569; text-align: center;"><span style="width: 26px;">1</span><span style="width: 26px;">2</span><span style="width: 26px;">3</span><span style="width: 26px;">4</span><span style="width: 26px;">5</span><span style="width: 26px;">6</span><span style="width: 26px;">7</span><span style="width: 26px;">8</span><span style="width: 26px;">9</span><span style="width: 26px;">35</span>
 </div>
 <p style="margin: 10px 0 0; font-size: 13px; color: #64748b;"><span style="color: #f59e0b;">●</span> Rip Cars’ inventory vote, with eight participants. Source: MetaDAO decisions page, proposals launched September 10 to October 14.</p>
</div>
<p>Galaxy’s October 15 report argues that stake size pulls volume: a proposal on top of a small treasury has a small dollar impact, so traders have little reason to commit much capital. It counts $50.5 million of assets in market-governed treasuries, with 78% of the value on MetaDAO. About $35.8 million of that is stablecoins, which Galaxy treats as the liquidatable value, what investors could claw back; MetaDAO holds 82% of it. MetaDAO’s first raise was only 11 months ago.</p>
<p>The public numbers show how many people traded, not what it would cost to move the price. That depends on how deep the two markets are, and the trade history on a proposal’s page lists each trade’s market, size and price. Concentrated control is the problem these markets are meant to answer; our earlier coverage of an <a href="https://coindoo.com/ecb-study-challenges-defi-narrative-as-control-and-capital-centralize/" rel="noopener noreferrer nofollow">ECB study on how control and capital centralise in DeFi</a> covers the other side.</p>
<h2 id="markets-do-say-no">Markets do say no</h2>
<p>Four of those 22 resolved proposals failed: three from Areal Finance and one from PREDICT. Areal’s included a token mint that would also have sent 20 million ARL to the team, and a reward mint of 5 million. PREDICT’s would have minted 2 million tokens to an external wallet. A fourth Areal proposal, <a href="https://metadao.fi/decisions/arl-004" rel="noopener noreferrer nofollow">ARL-004</a>, would liquidate the company and return its IP and rights to the operators. As of October 18 it had $86 of volume and under three days left.</p>
<p>The three-day window is also not fixed. Two organisations, ACCRUE and LFOWN, have passed proposals shortening their decision markets to 24 hours.</p>
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<h2 id="what-protects-token-holders">What protects token holders</h2>
<p>The first protection is the allowance. Spending inside it needs no vote, and anything beyond it does. Laso Finance, another MetaDAO organisation, put a raise from $50,000 to $68,333 a month to a market vote on September 26, to fund a senior developer hire. It passed with eight participants.</p>
<p>Umia, a rival platform for market-governed projects, publishes the same structure. <a href="https://umia.finance/docs/treasury" rel="noopener noreferrer nofollow">Its docs</a> say project funds sit in a treasury contract with three exits: a monthly allowance, disbursements approved by a decision market within about 72 hours, and liquidation, which winds the project down and returns the remaining assets pro rata. Umia says it keeps temporary powers during its early phase, including proposal approval and relay and an emergency veto against exploits, and plans to remove them as the system matures.</p>
<p>On enforcement, Umia says its <a href="https://umia.finance/docs/markets-as-board" rel="noopener noreferrer nofollow">legal structure</a> gives a market decision the standing of a board resolution and binds the operating team to carry it out. Those are the platform’s own claims. For Rip Cars, the company says CARS is an ownership coin, not equity and not a security, and that its IP is held by a segregated portfolio of Futarchy Governance SPC. MetaDAO’s trading screen warns that ownership tokens carry a risk of total loss.</p>
<h2 id="how-to-check-the-money-moved">How to check the money moved</h2>
<p>MetaDAO’s company page notes that outcomes are market-resolved, not company-reported. A vote shows approval, and the spending is a separate record. The proposal doesn’t state how much the new OTC round raised, so the only way to see whether the $250,000 moved is on the public ledger.</p>
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   1
  </div>
  <div><strong>Read the proposal.</strong><a href="https://metadao.fi/decisions/cars-004" rel="noopener noreferrer nofollow">CARS-004 on MetaDAO</a> lists the pass and fail prices, the trade history and the instructions attached to the vote.
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   2
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  <div><strong>Watch the treasury.</strong> Rip Cars’ <a href="https://solscan.io/account/5n1kEkZ68h2Wb6TPB88GPgvjv5tAoLyGGPSJCwoTWkLm" rel="noopener noreferrer nofollow">treasury wallet</a> shows outgoing transfers, so a $250,000 withdrawal would be visible.
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   3
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  <div><strong>Check the DAO account.</strong> The <a href="https://solscan.io/account/3szfyfczcGxe6zpTQQBfnkF24SMakWChxp3aU68HNYij" rel="noopener noreferrer nofollow">DAO account</a> and the proposal’s <a href="https://solscan.io/account/Ccj44rzUxSGxYtojj3xgcFqg4AkQFUcUqxRhxavZD6uP" rel="noopener noreferrer nofollow">on-chain account</a> hold the governance record.
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<p>After that, the question is what the money buys. The next Rip Cars vote will show whether turnout recovers from eight, and the company’s results will show whether the new inventory delivered the 5% margin it is aiming for.</p>
<p style="text-align: center;"><em>This article is provided for informational purposes only and does not constitute financial or investment advice. Ownership tokens are not equity and carry a risk of total loss.</em></p>
<p>The post <a href="https://coindoo.com/crypto-markets-approve-company-spending-with-8-traders/" rel="noopener noreferrer nofollow">Crypto Markets Approve Company Spending – With 8 Traders</a> appeared first on <a href="https://coindoo.com" rel="noopener noreferrer nofollow">Coindoo</a>.</p>

Crypto Markets Approve Company Spending – With 8 Traders

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