MarketDAO
Bringing Market Forces to Group Decisions
Bringing Market Forces to Group Decisions
MarketDAO is a governance framework that brings market forces to bear on group decisions. Unlike traditional DAOs where voting power is static, MarketDAO introduces tradable voting tokens for each election.
This creates a dynamic governance system where voters can:
The result is a governance framework that more accurately captures the true strength of preferences and creates efficient markets around governance decisions.
Voting tokens are freely transferable during elections, allowing market forces to influence governance outcomes.
Create resolutions, treasury transfers, governance token minting, parameter changes, and distribution proposals.
Customizable support thresholds and quorum percentages for different governance needs.
Support for ETH, ERC20, ERC721, and ERC1155 assets in the DAO treasury.
Elections can end early when a clear majority is reached, improving efficiency.
Built on the ERC1155 standard for flexible token management, with token ID 0 reserved for governance tokens.
Governance token holders can submit various types of proposals.
Proposals need to reach a support threshold to trigger an election. Tokens used for support are locked to prevent double-counting.
Once triggered, an election begins. Each governance token holder can claim voting tokens equal to their vested balance.
Voting tokens can be used to vote (transfer to YES/NO addresses) or traded with others who feel more strongly.
After the election period (or early if a clear majority is reached), the proposal is executed or rejected based on results.
After resolution, users can release their locked governance tokens for future proposals.
MarketDAO is built on Solidity ^0.8.20 with OpenZeppelin libraries, using the ERC1155 multi-token standard for both governance and voting tokens.
MarketDAO has been audited by Hashlock Pty Ltd (January 2026). All identified issues have been resolved.
Tokens are locked when used for proposal support or voting claims, preventing double-counting attacks.
Tokens are locked when registering for distributions, preventing double-claim attacks.
Election-ended checks apply to all transfers, not just direct transfers.
Distribution claims use proportional calculations to prevent pool exhaustion.
ReentrancyGuard on transfer functions prevents reentrancy during vote transfers.
Snapshot-based voting enables 10,000+ participants with constant gas costs.
See the Technical Reference for full security details.
When creating a new DAO, you can configure:
Note on Basis Points: All percentage parameters use basis points for precision (10000 = 100%, 5100 = 51%, 2000 = 20%, 250 = 2.5%), allowing for 0.01% precision.
MarketDAO is open source and ready for deployment:
src/ directory for all Solidity contractsClone the repository and follow the deployment instructions in the Technical Reference to deploy your own instance on any EVM-compatible network.
MarketDAO is just getting started, with plans for: