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Futarchy is a political system devised by economist Robin Hanson, which can be described pithily as "Vote for Values, Bet on Beliefs". Essentially, a measurement of success for a policy is voted on (such as the percentage of students who pass a particular test designed and administered by some organization that is voted for) using standard democratic elections - the "Value" that all get to decide upon - and a decision market is set up to consider which actual policy would maximize the voted-in value - the "Belief", essentially, that a particular policy would end up increasing the final value.
To many people's disappointment, it does not in fact mean rule by transwomen.
- Futarchy: Vote Values, But Bet Beliefs, Robin Hanson, August 2000