Experimental Crypto Investment Fund MtnDAO Will 'Beat VCs,' Claims Founder
Experimental Crypto Investment Fund MtnDAO Will ‘Beat VCs,’ Says Founder
MtnDAO Launches Futarchy-Based Token and Investment Fund
Danny Nelson | Edited by Steven Alpher Updated March 7, 2025, 1:29 pm UTC Published March 7, 2025, 2:30 pm UTC
What you need to know:
- MtnDAO is launching a futargy investment fund called mtnCapital.
- The regulation of this instrument will be carried out by the markets that trade the new mtnDAO token – MTN.
- The founders are confident that mtnCapital will outperform traditional venture capitalists.
Coworking summits at the mtnDAO hackerhouse come and go, but mtnCapital will be a permanent fixture.
Solana will unveil its $MTN token at its monthly developer meeting in late March, co-founders Barrett and Edgar Pavlovsky told CoinDesk. That's always been expected from the well-known token-proponent team, and what's even more intriguing is the token's functionality.
MTN will be the key asset of mtnCapital, an experimental investment fund based on a market-based governance model known as futarchy. The concept, first introduced by MetaDAO, has been captivating Solana maximalists since its debut at the mtnDAO coworking meetup in winter 2024.
Futarchy's proponents believe it could disrupt existing decision-making systems spanning capital markets, nation-states, and, of course, crypto-groups called DAOs, by putting the wisdom of the markets above the opinions of voters. MtnCapital will test whether funds driven by the markets can actually deliver returns commensurate with the risks.
It will make decisions based on the price movements of its MTN token. Simply put: if traders believe that a proposal (say, investing $100,000 in BTC) will be profitable for mtnCapital, they will raise MTN and it will go through. Conversely, if they believe that the deal will be unprofitable for mtnCapital, they will raise MTN and it will fail.
Move away from the one-man-one-vote concept. MtnCapital will be formed by traders with large sums and a desire to analyze order books.
“I really believe this will outperform venture capital funds,” Barrett said.
Futarchic financing
MtnCapital will raise all of its funds by selling its entire MTN token holdings to the general public.
How exactly this treasury will be used is entirely up to the market. The founders claim that they will have the same influence over mtnCapital as everyone else when it launches. If they want to, they will have to purchase tokens; there will be no airdrop or distribution to founders.
“We see futarchy as the Holy Grail of decentralization, where the project founders have no control because they don’t own the tokens,” Barrett added.
(When asked if he would bet, Barrett responded with something like, “Yeah, sure, I'm ready, are you crazy?”)
They plan to list mtnCapital on the recently approved MetaDAO launchpad to raise funds in a futarchy format.
MetaDAO's co-founders did not respond to a request for comment.
MtnCapital's management system relies more on the ability of traders to predict optimal outcomes than on the ability of voters to make the smartest choices.
The superiority of markets over democracies may be alarming to ballot box advocates, but it makes sense to the crypto-futurist engineers who gather twice a year at mtnDAO. Barrett and many others have carefully analyzed most of the trading decisions
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