05-27, 12:00–12:25 (CET), Flower
Conditional Funding Markets (CFMs), new implementation of prediction markets for capital allocation. This presentation explores recent CFMs implementations (Uniswap, Optimism), analyzes their limitations, and demonstrates why information markets and Futarchy are the most viable path for scalable, decentralized governance.
Polymarket’s success brought prediction markets into the overton window, paving the way for more nuanced implementation of Futarchy—one such product is Conditional Funding Markets (CFMs) which uses prediction markets to fund KPI bound proposals. CFMs are already being deployed in several of the biggest DAOs in the ecosystem, including Uniswap, Optimism, Zksync, and more.
The core guiding principle behind CFMs is encapsulated in this famous quote by economic and political commentator Thomas Sowell:
“It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.”
In this talk, we will examine recent implementations, discuss their challenges, extract lessons from each experiment, and explore how to extend CFMs to all crypto protocols—potentially revolutionizing decentralized governance for the better.
A partner at Collider a leading crypto/web3 venture fund.
My background is in startups. I was an early employee at ironSource (a unicorn acquired by Unity) and a founder in the space, in 2018 I created an onchain DAO to run hackathons (ETHBerlin, ETHDenver, ETHIndia, ETHWaterloo) until covid came. Advisor to DAOstack and on the founding team of DXdao, once of the most spectacular failed experiments at decentralized governance at scale
In 2016, I realized my personal goal for the foreseeable future is to build and push the ecosystem forward, whether it's crypto or Web3. Here's how I define them:
- Crypto: Right of center, libertarian tones. Decentralization away from authority, notably the state. Self-sovereignty leads to a better society.
- Web3: Left of center, social tones. Decentralization to give 'power to the people'. Egalitarianism leads to a better society.