DM ²: Decision-making market for DApps

Effective governance is vital for the proper operation and evolution of complex blockchain systems. Traditional blockchain governance mechanisms, primarily reliant on voting, face significant challenges including majority voting errors and incentive mismatch. To address these issues, we proposed DM ², a decision market designed to incentivize decision-makers and enhance decision accuracy in blockchain governance. In DM ² participants are encouraged to trade information, effectively resolving incentive shortcomings. Our marketplace can leverage collective intelligence to make decisions even when the majority opinion may be incorrect. We incorporate cryptographic techniques, including homomorphic time-lock puzzles and zero-knowledge proofs, to ensure fairness and security, preventing manipulation and ensuring proper participant rewards. Through a formal mechanism design model, we demonstrate that DM ² satisfies Bayesian incentive compatibility and budget balance, promoting truthful reporting and efficient market operation. Our implementation and evaluation of DM ² show its efficiency, scalability, and practicality in real-world settings.