Whereas the improvement of Decentralized Autonomous Organizations (DAOs) is thrilling, it additionally poses a severe governance problem: the potential focus of energy within the fingers of a small quantity of influential token holders. It’s insupportable to overstate nonetheless severe this plutocracy subject is and nonetheless mixture methods should be employed to defend the antiauthoritarian integrity of DAOs. So as to safe, democratize, and streamline DAO operations, this nonfiction suggests an integrative governance exemplary that mixes antithetic techniques.
1. Delegated voting and randomly chosen committees nether faceted governance
The institution of a complicated, delegative antiauthoritarian technique in DAOs serves arsenic the proposal’s archetypal tenet. Right here, the DAO’s organizational construction is divided into specialised committees that every handle peculiar areas of decision-making. To ensure simply illustration, members of those committees are drawn astatine random from the excavation of token holders.
We propose a hybrid of quadratic and delegated voting inside every committee. As a result of exponentially rising outgo of additional votes, quadratic voting reduces the hazard of dominance by rich token holders. Delegative voting allows token holders to give their voting energy to vetted brokers, guaranteeing that their opinions are heard even when they don’t seem to be actively collaborating in selections. As it rewards long-term token holding with accrued voting energy, this exemplary in addition to promotes sustained data profitable the DAO.
2. Fukarchy and the Harbinger Tax: Two Faces of the Identical Coin
The utilization of the futarchy and harbinger tax mechanisms is additionally suggested. Futarchy, a governance mannequin based mostly on prediction markets, tin be used profitable conditions wherever the results of a willpower is quantifiable. This ensures that decisions are made profitable a mode that volition profit the DAO the most.
On the completely different hand, the Harbinger Tax mechanism acts as a safeguard in opposition to the accumulation of majority tokens by a azygous entity. By distributing oregon burning a data of their tokens, this mannequin prevents an extreme attraction of voting powerfulness by requiring any member trying to get hold of important energy finished huge token purchases.
3. Sustaining equality by authenticating every particular person’s id
The closing tenet of this governance construction is the “one individual, one vote” tenet, which is realized by means of distinctive id verification.
It allows every subordinate to fashioned a azygous vote, regardless of how galore tokens they’ve. You will need to enactment that sustaining anonymity and decentralization is a tough job. Making use of decentralized individuality platforms oregon zero-knowledge proofs could present a workable resolution to get astir this.
Though the proposed governance exemplary could seem complicated, it is easy and businesslike and is aimed at defending the antiauthoritarian ethos of DAOs. This mannequin goals to safeguard DAOs from being dominated by a small fig of extraordinarily highly effective entities pretty much as good arsenic to encourage a energy steadiness and the energetic participation of every stakeholders profitable the DAO’s success.
Although promising, it is necessary to understand that this mannequin is mainly theoretical. Earlier than being enactment into apply, it would require in depth testing, analysis, and modification. Nonetheless, it gives a helpful information for creating a robust, simply, and antiauthoritarian governance technique mistaken DAOs, aligning with the greater image of the blockchain panorama.
