According to LessWrong, asset futarchy—a governance system where markets predict whether proposals create value—faces a critical vulnerability: proposers with enough capital can manipulate conditional prices to pass proposals that don't actually benefit the organization. In one attack, a proposer can promise valuable work, then skip delivery if market opposition is weak enough that defending the passing price costs less than actually doing the work. In another, proposers can push through value-destroying proposals by buying their way above the passing threshold, extracting wealth from token holders. The defense requires trusted reviewers to gate proposals, reintroducing centralized governance risk—suggesting robust futarchy can't be fully permissionless.

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