Crypto News

Ethereum-based market platform unveils a new DAO

Gnosis, an Ethereum-based platform that facilitates betting on events and other metrics, revealed plans for its own decentralized autonomous organization, or DAO, called GnosisDAO.

“This will have the effect of progressively decentralizing Gnosis as a project using a native governance framework powered by their token economy, bringing governance to the coming internet of value,” according to a public statement Monday sent to Cointelegraph.

In addition to its prediction markets wing, Gnosis has a multisignature Ethereum-based digital asset storage platform. GnosisDAO involves Gnosis’ prediction markets and its multisig wallet operation.

Essentially, DAOs run ecosystems automatically, based on a set of rules. A number of invested parties govern the system, voting on rule changes and other aspects, with certain checks and balances in place.

The statement details of GnosisDAO:

“Prediction markets will be created using a new Gnosis Safe Multisig initially funded with 1,000 ETH and 20,000 GNO from the Gnosis treasury. Ultimately, GnosisDAO is to have effective control over 150K ETH and 8 Million GNO. In doing so, Gnosis intends to play a key role in the decentralization of technical and governance layers for products in the web3 ecosystem.”

Gnosis built its DAO with concepts from a school of thought known as Futarchy, the statement explains. Robin Hanson, an associate professor at George Mason University, came up with the concept as an alternative government framework.

“In ‘futarchy,’ we would vote on values, but bet on beliefs,” Hanson says in his Futarchy manifesto. “Elected representatives would formally define and manage an after-the-fact measurement of national welfare, while market speculators would say which policies they expect to raise national welfare.”