The basic idea of futarchy is to give decision-making authority to markets.
Futarchy is easier to understand if you have participated in prediction markets. The prediction market performs market settlement based on the results of what happens in reality, while Futarchy is executed in reality based on the results of market settlement.
For example, in an NBA game prediction market, we bet on the Lakers winning. When the game ends, if the Lakers really win, we will win the reward, otherwise we will lose the cost.
In Futarchy’s market, we bet on whether the Lakers will trade James. If they ultimately choose to trade James and have more funds, then we will use this decision to trade James.
The most important thing is that there is no so-called team/project party, but pure market behavior. If you choose to use Futarchy to make decisions, it will be completely market-oriented. Personal decisions may be biased, but the market is always right.