I think it's simply a choice of phrasing that happened to cause an incongruous mental image for me; hence my attempt to work it around to a description I could encompass. I think of "to fail" as an active verb -- futarchy doesn't exist because we fail to enact it. In my brain, something that doesn't exist can't do anything, including fail to exist. As for the Pearl reference, I think I'll just point you to the source.