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Futarchy is a protocol for groups of people to make decisions together. It is based on the principle that the price of a market reveals the market clearing price, and even if someone wants to manipulate the price, they cannot.
If we carefully craft the securities in a market, then we can make it so that the market price reveals useful info to us, like telling us which decision we should make.
For example, one concern listed in the readme is food shortages. In order to properly prepare for food shortages, it would be helpful to know the probability that they will occur in the next few months. So we could make a security that says "If more than X people die of hunger in this area during this time period, then the security is worth 1 ATOM, otherwise it is worth 0 ATOMs"
And if we had a market for this security, we could know the probability of food shortages for this location and time.
Another example, we could make a security that says "if candidate X wins the election, then the bet is undone. If more than X people die of hunger, it is worth 1 ATOM. Otherwise it is worth 0 ATOM." and one that says "if candidate X loses the election, then the bet is undone. if more than X people die of hunger, it is worth 0 ATOM. Otherwise it is worth 1 ATOM." By making markets for both of these securities, we could find out if candidate X will have a positive or negative influence on the likelihood of food scarcity.
Futarchy is the only way for a community to make decisions that is not vulnerable to being corrupted by a rich person who wants to use their money to influence the outcome. So it is ideal for a community like Virgo to make decisions.
I wrote an essay about using futarchy to maintain the climate https://github.com/zack-bitcoin/amoveo-docs/blob/master//use-cases-and-ideas/climate_maintenance.md