> ## Documentation Index
> Fetch the complete documentation index at: https://docs.star.fun/llms.txt
> Use this file to discover all available pages before exploring further.

# Market Ownership

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Market ownership is a token-based ownership model where capital, governance, and key decisions are coordinated through onchain markets rather than founder discretion.

It is designed to reduce reliance on trust by making how funds are used and how decisions are made explicit and enforceable.

## Overview

In most token launches, founders retain full control over capital and decision-making. This creates a gap between investor expectations and actual rights.

Market ownership introduces:

* Transparent rules for capital allocation
* Market-based governance over key decisions
* Direct alignment between token holders and project outcomes

The result is a system where participation is based on defined structure, not implied trust.

## Key Properties

**Restricted Founder Control**\
Founders cannot unilaterally extract funds or execute major decisions.

**Market-Mediated Governance**\
High-impact decisions (e.g. treasury usage, structural changes) are determined through onchain markets.

**Direct Economic Exposure**\
Token holders retain exposure to upside without relying on offchain agreements.

**Transparent Capital Flows**\
Treasury usage and changes to allocation are visible and governed by predefined mechanisms.

## Governance Model

Market ownership uses decision markets (futarchy) to guide governance.

Participants express beliefs about outcomes by allocating capital, producing real-time signals on which decisions are expected to maximize long-term value.

Governance is typically scoped to:

* Treasury allocation
* Protocol or structural changes
* Other high-impact decisions

Day-to-day operations remain with the founding team.

## Implementation

Market ownership is implemented in partnership with [Combinator](https://www.combinator.trade/).

## Fundraising

* Projects raise capital through Star
* Teams define initial monthly allowances (adjustable via governance)
* A legal structure assigns governance rights over protocol and IP to the market

## Post-Raise Setup

* Tokens are minted after the raise
* Liquidity is deployed to Combinator's AMM
* Treasury and LP are established onchain

## Control & Permissions

* Treasury transactions
* Mint authority
* Liquidity positions
* Protocol and IP governance

All are controlled via futarchic mechanisms.

## Decision Markets

* Created and traded on Combinator
* Integrated into the Star interface over time
* Outcomes determine which proposals are executed

## When to Use

Market ownership is best suited for teams that:

* Want to maximize transparency and credibility during fundraising
* Are comfortable delegating key decisions to market mechanisms
* Prefer strong alignment with token holders over unilateral control

## Summary

Market ownership replaces discretionary control with market-driven coordination.

It provides a clear, enforceable structure for how capital is managed and how decisions are made, improving credibility and aligning incentives across all participants.