PumpFut is Solana's futarchy monorepo — three on-chain programs that replace DAO voting with prediction markets. People trade on whether proposals pass. The market decides.
Traditional DAOs vote with tokens. PumpFut asks a different question: would this token go up if the proposal passed? Traders bet yes or no. No ballots. No rubber stamps. Skin in the game.
Every governance decision follows the same on-chain lifecycle. Here's the ELI5 version from the repo docs.
A proposer submits an SVM instruction (e.g. treasury spend, fee switch) plus a description. Conditional vaults and AMM accounts are initialized via script.
Token holders stake 200K–1.5M tokens to activate the proposal. Anti-spam filter — stake is returned, never slashed.
Half of spot liquidity migrates into conditional markets. Traders speculate on pass-META vs fail-META prices.
After a 24h delay, a lagging TWAP oracle records prices. Pass TWAP must beat fail TWAP by +3% (default) to pass.
If passed, the on-chain instruction runs automatically. Conditional vaults settle — pass-token holders redeem. If failed, fail-token holders win.
PumpFut is an Anchor monorepo. These immutable, OtterSec-verified programs work together — autocrat orchestrates, vaults mint conditional tokens, AMM runs the markets.
DAO + proposal orchestrator. Initializes DAOs, creates proposals, compares TWAPs, executes passed instructions.
Mints pass/fail conditional tokens from underlying assets. Settles or reverts vaults based on proposal outcome.
Constant-product AMM for pass/fail markets. Swap, LP, and crank the lagging TWAP oracle.
Solana can't revert finalized transactions — so futarchy simulates "what if" trades using conditional tokens. Deposit USDC, get pass-USDC + fail-USDC. Only one side pays out.