The FaaSFi DAO

Philosophy: Vote on Values, Bet on Beliefs

The FaaSFi DAO operates on the principles of Futarchy. We believe that markets are better at aggregating information than committees. Therefore, the DAO does not vote on actions (e.g., "Should we spend $1M on marketing?"); it votes on outcomes (e.g., "Will spending $1M on marketing increase the token price?").

The Voting Process

1. Proposal Submission A DAO member submits a proposal to upgrade the Smart Order Router code. They define a metric of success, typically the price of the FAAS token over a 7 day period.

2. Market Creation (Conditional Markets) Upon submission, the protocol automatically deploys two prediction markets on Limitless (for low fees) or Polymarket:

• Market F_Pass: "What will be the price of FAAS in 7 days IF the proposal passes?"

• Market F_Fail: "What will be the price of FAAS in 7 days IF the proposal fails?"

3. The Decision Engine Traders speculate on these markets.

• If Price(F_Pass) > Price(F_Fail) by a Time Weighted Average Price (TWAP) spread of >2% over 3 days, the market signals that the proposal is beneficial.

• Automatic Execution: The DAO smart contract observes this oracle data. If the "Pass" market is higher, the proposal is executed automatically on chain. If the "Fail" market is higher, the proposal is rejected immediately.

4. Meta-Governance While markets decide how to achieve goals, the community must still decide what the goals are (Values). Traditional voting is reserved solely for "Meta-Governance," such as changing the definition of the success metric or electing committee members for the multisig veto key (used only for emergency security halts).