After its long-time involvement in the prediction markets landscape, the pioneering Ethereum development firm and predictions market platform Gnosis is now launching GnosisDAO — the cryptocurrency industry’s first decentralized prediction market-driven collective.
Within a prediction market, people can buy or sell the shares of a possible outcome, or prediction, to reflect whether or not they support the prediction. It acts as a store of crowdsourced information that can help define the most likely future.
Gnosis intends to bring a similar concept of prediction markets into the decentralized finance space. It will allow end-users to have a say in the governance and technical layers of web3 ecosystems. By doing so, the DAO will ensure the governance process is taken away from centralized organizations and more power is given to a network of people, thus decentralizing the process.
The CEO of Gnosis, Martin Köppelmann, said that while they plan to expand the use case of GnosisDAO over time, initially, the prediction market technology will help them transparently make development, support, and governance-related decisions of their token.
He also said that the DAO could grow to guide organizational development of DeFi.
Explaining that the technology underlying GnosisDAO is open for every organization to use, he emphasized that it may create a pattern for organizational and corporate governance for the decades to come.
The Gnosis team has previously worked on Omen Prediction Markets that raised $1.24 million for U.S. presidential election result prediction. They expect that GnosisDAO will define a new paradigm for “futarchy” — governance by prediction markets — in the age of decentralization