Prioritize Listing META?

Proposal Type
Token Listing Application

Author(s)
Nallok, Divide

Preamble
Drift is evaluating the use of futarchy for token listing. Futarchy is a process by which speculative markets make decisions, because markets aggregate information better, reduce bias, and incentivize accuracy versus a standard voting process. Or simply - markets make better decisions.

The goals of the futarchic listing process are i/ to empower the community to surface listings for Drift, ii/ better utilize governance, and iii/ to create a repeatable, lightweight process that will lead to more optimal use of Drift’s development and listing resources.

Should this proposal pass, the META token will be prioritised to be listed on Drift for Spot and Perp trading. It will also serve as an experiment to help develop a decentralised listing process using futarchy.

Overview
META is the tokenized representation of MetaDAO, the world's first market-governed organization. This mechanism is called Futarchy and was first created by George Mason University Economist Robin Hanson in 2001. Futarchy, which was first implemented onchain by MetaDAO, is designed to improve governance participation and incentivize more optimal decision-making, leading to better outcomes. The basic idea at the core of futarchy is that speculative markets are better decision-makers than voters. The advantage of using markets compared to traditional voting is that markets aggregate information better, reduce bias, and incentivize accuracy

Token Utility
META is traded in conditional markets for decision making of the DAO. For every proposal, there’s a pass market, where people speculate on what the value of the DAO would be if the proposal passed, and a fail market, where people speculate on what the value of the DAO would be if the proposal failed. Decisions are made based on the prices of these two markets. If the value of META is higher in the pass market than in the fail market, it means the market thinks that the proposal adds value. So it should pass. If the pass market is lower than the fail market, it means the market believes it destroys value. So it should fail.

Why Prioritize This Listing
Historically, governance participation among token holders has been low and the processes to govern have not been user-friendly. To overcome these challenges, MetaDAO uses markets to make decisions, anything that can improve market utilization such as higher liquidity and perpetuals will allow for more information to be encoded into the decision making process. If traders have the ability to go long or short META they will have more capacity to trade the decision markets creating a flywheel between Drift Perps Markets and MetaDAO Decision Markets, ultimately creating more volume, more trades, new users, and better user retention.

Risks
This token has low onchain liquidity and low trading volume. It has limited CEX exposure (only on CoinEX) and it is uncertain if there will be any increase in volume. Therefore, it can be highly volatile and susceptible to price manipulation, which poses a significant risk when offering futures or when used as collateral.

Liquidity Incentives or Programs
If passed and listed, Drift would commit to a 1x multiplier for FUEL in the markets for spot deposits.

Additional Information
MetaDAO is a novel approach to governance that has the potential to reshape how decisions are made on and off chain.

Details