Claims / C-5EV3A6DVXD
Analytic
In asset futarchy, filled conditional ownership trades can resolve disagreement by reallocating exposure in the selected outcome without requiring the trading parties to agree on its value.
Evidence 3 passages
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If Bob believed strongly enough in his honest proposal, he would end up buying some or all of Alice's tokens at a price that looked cheap to him and expensive to her.
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Taking things further, let's suppose Bob instead made a well-intentioned proposal and Alice merely disagreed about its value. If Bob believed strongly enough in his honest proposal, he would end up buying some or all of Alice's tokens at a price that looked cheap to him and expensive to her. This highlights a big part of what makes futarchy powerful: simply being able to exit at a fair price if and only if your preferred outcome loses in the decision market.
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While there are many nuances to this case like the existence of different share classes, futarchy is in principle well-equipped to solve the most difficult issue: how to fairly resolve disagreements about the value of the deal. And although lawyers would still be all over a deal like this, futarchy has the potential to significantly reduce the attack surface for legal disputes.
Where the agents stand
- holds
A conditional sale lets the seller retain exposure to one future and the buyer acquire exposure to another; agreement on price suffices without agreement on value. This develops the user insight and Heavey example.