# Shutter Foresight Grants — Powered by Kleros and Seer
**URL:** https://shutternetwork.discourse.group/t/shutter-foresight-grants-powered-by-kleros-and-seer/938
**Category:** SD 0x36 Proposals
**Created:** [August 21, 2026, 1:30pm UTC](https://shutternetwork.discourse.group/t/shutter-foresight-grants-powered-by-kleros-and-seer/938 "2026-08-21T13:30:19Z")
**Posts on this page:** 5
**Page:** 1
### Author:  [@0xAlex](https://shutternetwork.discourse.group/u/0xAlex)
#### Post date: [August 21, 2026, 1:30pm UTC](https://shutternetwork.discourse.group/t/shutter-foresight-grants-powered-by-kleros-and-seer/938/1 "2026-08-21T13:30:19Z")
# **Context**
Shutter DAO 0x36 distributes grants and elects the Keypers. It has funded 17 organizations, including brainbot, Decent, Tailored Agency, Artis, Dappnode, Blockful, JLH, Privacy Guardians, Protocol Guild, etc.
This pilot adds a new selection tool: decision markets that identify the applicants most likely to create value for the Shutter ecosystem with the final approval still in the hands of SHU holders.
## **TL;DR**
Shutter Foresight Grants is a pilot that uses decision markets to select three projects for maximum grants of $5,000 each.
After six months, one shielded Snapshot vote per project assigns an Impact Score of 0, 25, 50, 75 or 100; the voting-power-weighted median determines both the proportional SHU payment from the DAO Treasury and the market resolution.
**Two grant problems this Design solve:**
1. **Attracting and selecting the best projects.** Committee-only reviews concentrate judgment in a small group and give evaluators little incentive to be right. Decision markets can involve a wider set of informed participants, update as new information appears and reward traders that have skin in the game. The three highest market estimates determine admission.
2. **Keeping selected projects involved under the control of the DAO.** Selection is only the beginning: the three teams must remain active for six months, publish progress and deliver. A final DAO score releases 0%, 25%, 50%, 75% or 100% of each project’s maximum $5,000 grant, avoiding an all-or-nothing cliff while preserving DAO control.
**The division of roles is simple: markets identify talent; builders deliver; the DAO scores results and authorizes proportional payment.**
The pilot will run on [Kleros Foresight, a platform](https://foresight.kleros.io/) that was built to make Vitalik’s idea of [Distilled Human Judgement](https://vitalik.eth.limo/general/2025/02/28/aihumans.html) and Decision Markets a reality.
# **1. How the Mechanism Would Work for Shutter Grants**
The pilot follows one cohort of eligible applicants. For illustration, assume eight projects apply.
## **Phase 1 — Enlist and approve projects (4 weeks)**
Applicants submit a short proposal and evidence that traders can review. The DAO holds an approval vote on Snapshot to admit eligible projects. This vote checks relevance and basic feasibility; it does not rank the applicants.
## **Phase 2 — Commit a sealed shadow-committee ranking**
Before trading begins, a panel composed of brainbot and Kleros ranks all eligible applicants by their expected impact on the Shutter ecosystem. The panel submits its ranking through Shutter Predict, a tool that will also be open to anyone, and a cryptographic commitment to the aggregated ranking is published before the markets open.
The ranking remains sealed until Phase 5 and has no effect on project selection, funding or market trading. Once revealed and verified against the commitment, the relative ordering of the three selected projects is compared with their market ranking and final DAO Impact Scores. This provides a clean benchmark for comparing panel judgment, market forecasts and token-holder evaluation.
## **Phase 3 — Market creation and trading (4 weeks)**
One conditional scalar market is created for each eligible project. Every market asks:
_ **Market question.** If Project X is selected, what Impact Score will it receive after six months?_
_ **Resolution.** For a selected project, the market resolves to the voting-power-weighted median of its final shielded Snapshot vote: 0, 25, 50, 75 or 100. The median is the lowest score at which cumulative voting power reaches or exceeds 50% of all voting power cast. No participation quorum applies._
Anyone can trade. At the end of the trading period, applicants are ranked by their seven-day time-weighted average market estimate. The **three highest-ranked projects** are admitted to the program. No grant is paid at this stage.
Only the three selected markets will later resolve. Markets for unselected projects settle neutrally, so traders recover their positions without profit or loss.
## **Phase 4 — Six-month delivery period**
The three selected projects work with the Shutter ecosystem for six months. They publish regular progress updates, remain responsive, and present a final deliverable. Their grants remain reserved by the DAO.
## **Phase 5 — DAO scoring, payment and market resolution**
At the end of the six-month period, the DAO evaluates each selected project through a separate shielded Single Choice Snapshot proposal. Each proposal asks:
_**3 Snapshot Proposals (1 for each project selected)**: Based on Project X’s delivery and demonstrated value to the Shutter ecosystem, what percentage of its maximum $5,000 grant should the DAO release? This percentage is the Impact Score._
While the Impact Score is inherently subjective, SHU token holders are incentivized to distribute DAO funds responsibly and foster long-term trust and value creation thanks to this grant program.
Voters choose one of five options:
The project’s **Impact Score** is the voting-power-weighted median of all votes cast. The median is the lowest option at which cumulative voting power reaches or exceeds 50%. The DAO releases the same percentage of the maximum grant: **Payment = Impact Score ÷ 100 × $5,000.**
The same Impact Score resolves the project’s prediction market.The result is posted through Reality.eth, with Kleros Court available for disputed resolutions.
## **How the median works — three examples**
Read each table from the lowest score upward. The weighted median is the first option where cumulative voting power reaches or exceeds 50%.
### Example 1 — Partial approval
###
### Example 2 — Strong delivery
### Example 3 — Rejection
## **Process overview**
## **Worked examples**
The table below shows selection and proportional evaluation, including full, partial and zero payouts.
# **2. Precedents Deep Funding**
This is not a theoretical mechanism. Seer and Kleros have already operated a similar mechanism.
**Deep Funding (Gitcoin GG24).** The Ethereum Foundation sponsors and promotes Deep Funding, which uses the Seer prediction market ([deep.seer.pm](http://deep.seer.pm)) as its infrastructure. In the GG24 Dev Tooling and Web3 Infra Round, **$350k** was allocated through Deep Funding via 500 evaluations across 98 eligible repositories ([gov.gitcoin.co/t/deep-funding-gg24](https://gov.gitcoin.co/t/deep-funding-gg24-web3-tooling-and-infra-round/25040)). Deep Funding’s infrastructure was Seer prediction markets with similar underlying Conditional Tokens Framework, is the same stack this proposal would use.
**[Kleros Foresight](https://foresight.kleros.io/), live today.** Kleros built and operates Kleros Foresight, the interface proposed here, with Seer providing market infrastructure and Kleros handling dispute resolution. Foresight has been tested through live experiments with real money and refined based on user feedback.
# 3. Liquidity Flow
The markets need enough liquidity to produce meaningful price signals.
**Who provides the liquidity** : **Kleros Cooperative provides the reusable liquidity** capital across the cohort, not a program expense. A portion could be distributed as trading credits to encourage participation. Any impermanent loss is a small information-discovery cost paid by Kleros Cooperative.
**Trading asset and network: sDAI on Gnosis Chain** The prediction markets will run in **sDAI on Gnosis Chain**. sDAI provides a stable unit of account for trading and liquidity, while Gnosis Chain offers low-cost, EVM-compatible execution.
# 4. The Ask
Kleros Cooperative covers the operational costs of the pilot, supplies the reusable market liquidity capital from its own treasury and all the costs related to the development of Foresight interface and Seer provides the prediction-market infrastructure.
- Shutter DAO 0x36 is asked only for an up to **$15,000 grant pool (the final amount would probably be lower)**: three maximum grants of $5,000 each, paid proportionally in SHU tokens coming from the Treasury according to each project’s final median Impact Score.
- Shutter DAO 0x36 funds the pilot pool, approves the eligible cohort, evaluates each selected project in a separate final shielded **vote and authorizes the resulting proportional payments**.
- K **leros & brainbot supports marketing,** communications, applicant support and initial applicant vetting.
## **Foresight Interface preview**
# **5. Conclusion**
Shutter Foresight Grants create a clear division of responsibility:
- markets search for promising talent,
- builders prove themselves over six months
- the DAO scores delivery and authorizes proportional payment
The result is a low-cost grant pilot with stronger selection and proportional accountability that can attract interest from governance and decision-market communities. Leveraging decision markets and maintaining DAO control through final delivery ensures every dollar invested in grants provides maximum value to the Shutter Ecosystem.
_Special thanks to @Loring-Brainbot for reviewing and giving feedbacks on this Proposal_
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### Author:  [@Rika\_AxiaNetwork](https://shutternetwork.discourse.group/u/Rika_AxiaNetwork)
#### Post date: [August 27, 2026, 3:52pm UTC](https://shutternetwork.discourse.group/t/shutter-foresight-grants-powered-by-kleros-and-seer/938/2 "2026-08-27T15:52:03Z")
I see value in testing whether decision markets can improve how the DAO identifies and evaluates grant recipients, while retaining DAO control over final payment. The capped $15k pool and proportional payout structure also limit the financial downside of the pilot.
However, the proposed process feels overly complex for three grants of up to $5k each: DAO eligibility approval, a sealed shadow ranking, conditional markets, a six-month delivery period, separate final shielded votes, weighted-median scoring, and potential Kleros dispute resolution. Each element may be reasonable independently, but together they create meaningful operational and cognitive overhead relative to the size of the program.
It would help to **clarify whether Shutter is primarily funding three small ecosystem grants or running a governance-research experiment in decision-market grant selection.**
If the former, I would favor simplifying the process.
If the latter, the proposal should set explicit learning objectives and a clear end-of-pilot decision on whether the additional complexity produced better selection or accountability than Shutter’s existing grant process.
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### Author:  [@Rika\_AxiaNetwork](https://shutternetwork.discourse.group/u/Rika_AxiaNetwork)
#### Post date: [August 27, 2026, 7:15pm UTC](https://shutternetwork.discourse.group/t/shutter-foresight-grants-powered-by-kleros-and-seer/938/3 "2026-08-27T19:15:58Z")
@0xAlex I’m also curious if Gnosis’ recent announcement that it will transition to an Ethereum-settled rollup will have any impact on the prediction markets since they are slated to run on Gnosis Chain?
See [here](https://thedefiant.io/news/blockchains/gnosis-chain-to-abandon-its-validator-set-and-settle-to-ethereum) and [here](https://x.com/gnosischain/status/2090064489798582615?s=20) for context about the announcement.
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### Author:  [@SEEDGov](https://shutternetwork.discourse.group/u/SEEDGov)
#### Post date: [September 1, 2026, 3:26pm UTC](https://shutternetwork.discourse.group/t/shutter-foresight-grants-powered-by-kleros-and-seer/938/4 "2026-09-01T15:26:46Z")
Hi everyone!
Wanted to signal that we support this proposal. We believe this pilot program for futarchy and decision markets represents an interesting governance experiment that could benefit Shutter DAO in several ways.
First, it provides an opportunity to experiment with new approaches to decision-making, or, as in this case, with new tools designed to support the decision-making process. Second, from a visibility perspective, this experiment could position Shutter DAO at the forefront of experimentation with innovative governance tools, creating an opportunity to generate visibility, attract attention, and strengthen the DAO’s positioning within the broader governance ecosystem.
Another key factor behind our support is that Kleros and Seers will cover the development, implementation, infrastructure, and operational costs, as well as provide the initial liquidity. Therefore, the DAO is not being asked to fund the development or operation of the system. The only funds requested from the DAO are intended for the grant pool.
Finally, SEEDGov has previously promoted similar experiments with Kleros in other governance ecosystems, such as [Velora](https://gov.velora.xyz/t/pip-72-liquidity-funding-for-futarchy-experimentation-in-velora-governance/2226), where unfortunately the protocol and DAO faced financial difficulties that forced the suspension of a program that was already underway and beginning to show promising results. We therefore see Shutter’s initiative as a continuation of, and consistent with, the type of experimentation we have supported and pursued in the recent past, which is another reason why we are happy to support this proposal.
Thanks!
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### Author:  [@0xAlex](https://shutternetwork.discourse.group/u/0xAlex)
#### Post date: [September 2, 2026, 11:57am UTC](https://shutternetwork.discourse.group/t/shutter-foresight-grants-powered-by-kleros-and-seer/938/5 "2026-09-02T11:57:47Z")
@Rika_AxiaNetwork thanks for your interest and for the thoughtful feedback.
I completely understand the concern that the process can appear complex relative to three grants of up to $5K each. However, most of that operational complexity is handled by us rather than by the DAO or the applicants.
For DAO members, the main responsibilities are to approve the eligible cohort and, at the end of the pilot, evaluate the selected projects through Snapshot. The DAO therefore retains control over the funds and the final assessment of delivery. This could potentially be simplified further by having a committee designated by the DAO handle some of these steps instead.
For applicants, the process is also relatively straightforward: they apply to the grant program, and the three selected projects become eligible for grants of up to $5K each. Given current market conditions, we believe this can still be an attractive opportunity for early-stage ecosystem projects.
That said, I think your distinction between a grant program and a governance-research experiment is an important one. We see this pilot as both.
The grants provide direct funding to projects that can contribute to the Shutter ecosystem, while the decision-market mechanism gives us an opportunity to test a different way of identifying which projects are most likely to create value.
One of the main objectives of the experiment is therefore to compare different forms of judgment. At the end of the pilot, I will publish a report covering, among other things:
- key decision-market metrics, including participation, number of traders and trading volume;
- the ranking produced by the sealed shadow committee compared with the ranking produced by the markets;
- the final DAO Impact Scores for the selected projects; and
- what we can learn about whether decision markets provided a useful signal compared with committee-based evaluation.
The goal is not necessarily to prove in advance that decision markets are better, but to generate evidence about whether they can improve project selection and whether the additional mechanism is justified.
There is also a broader strategic angle for Shutter. Decision markets are receiving increasing attention in governance, including recent developments around projects such as MetaDAO and UMIA recent sucess raise. We think this pilot gives Shutter an opportunity to participate in that conversation while Kleros covers the operational costs and market liquidity.
Regarding your question about Gnosis Chain: yes, the Seer markets for this experiment are planned to run on Gnosis Chain.
GnosisDAO has approved the transition of Gnosis Chain toward an Ethereum-settled EEZ rollup. Based on the current transition plan, existing applications, contract addresses, balances and state are expected to remain intact, with no application redeployment required. So at this stage we do not expect the transition to materially affect how the Seer markets for the pilot operate. Of course, we will keep monitoring the technical implementation as the transition progresses.
@SeedGov thanks, we really appreciate the support!
We also believe decision markets and prediction markets are likely to play a larger role in governance over time. Recent experiments involving Seer in grant allocation are another encouraging signal like [this recent experiment](https://x.com/devanshmehta/status/2092529402932494647) with Zcash .
From our perspective, this is an opportunity for Shutter to gain visibility in this emerging area while testing the mechanism at a very low cost, as the only funds asked are to fund the grant pool.