Market-based Governance

SX Network is unique in that it’s being built with a native prediction market protocol integrated into the chain. This makes SX Network uniquely positioned to utilize prediction markets for governance decisions (also known as Futarchy). This involves using a voting system to determine objectives and values, while using a prediction market` to determine the optimal policy for achieving the objective.
Utilizing market-based governance on SX Network involves creating a proposal that had an objective desired outcome that can be measured explicitly with a data feed. The objective, for example, could be the trading volume of SX on a basket of trusted decentralized exchanges. A prediction market would thus be formed in which holders of staked SX would wager their tokens on whether the proposed policy would best achieve the desired outcome.
If the market price of the YES market surpassed the NO market, then the proposed policy would be implemented and funded. Bettors on this market would thereafter have their tokens locked up until the expiration date of the policy. At that point, the data feed would indicate whether the desired outcome was achieved with YES bettors winning the stake of NO bettors in the event it did, and vice versa.

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