What is Butter?

🧈 Welcome to Butter 🧈

We use special markets that make funding decisions—and you can help.

It's Simple

Prices in Prediction Markets represent our collective beliefs about the future

Tokens can be designed to represent any idea we can express in a smart contract—even events that may or may not happen in the future. We can make tokens that represent the outcome of an election or tokens that represent the growth of a protocol's revenue.

As you buy or sell tokens, you update their prices and contribute your beliefs about the future. Even better, we can use these prices to make funding decisions.

For example:

Rather than electing a committee or holding a vote to decide ecosystem grants, we create two tokens for each proposal:

• Revenue_Funded — the protocol’s revenue if the proposal is funded

• Revenue_Not_Funded — the same revenue if the proposal is not funded

Markets price both tokens. The more additional revenue you believe a proposal can generate when funded, the larger the gap you expect between Revenue_Funded and Revenue_Not_Funded.

CFMs select the proposal with the highest forecasted impact—defined as the difference between its Revenue_Funded and Revenue_Not_Funded prices—to receive the grant. This way we ensure the grant has the best chance of impact.