Futarchy

Futarchy is a hyptothetical form of government in which policies are defined by elected officials, and then betting markets are used to determine which policies are adopted. Essentially, people would vote on a KPI or some metric and then prediction markets form around specific policies to affect this metric. User’s participate in the prediction markets as a means of signalling the crowd’s collective perception of the probability of an event occuring. Futarchy was proposed by an associate professor of economics at George Mason University, Robin Hanson, in 2000.