Based on the concept of BitShares. Instead of creating BitAssets whose value is supposed to mirror a real life asset (USD, Gold, …) the "assets" in this DAC would be a certain weather information at a certain point in time and space.
For example: Maximum temperature in Adelaide, South Australia on 15th Dec 2013 in °C.
When the point in time is still far ahead the orderbook spread would be wide, after a while the first trade would happen and the market price should fluctuate according to the best forecast, then approach the real temperature. After the point in time has passed the fair value is known*) and shorts and longs should slowly pull out of the market at that price (same as with BitAssets).
*) This could be defined in advance as the data of a certain weather station. But this could incentivise manipulation. Instead the location doesn't have to be defined that exactly as the market will have to find a consensus anyway.
For those who are just interested in the weather data, there is no need for trading. And even if no trade ever happens, the bid/ask spread still contains valuable information.
Issues I can think of:
- Many rather small markets
- Who decides which markets to create
Of course this must not be limited to "max daily temperature", any weather data would be possible: Min temp, temp at x o'clock, mm of rainfall, hours of sunshine per day, average windspeed of a day, etc.