governance voting power

Governance voting power in decentralized systems, such as DAOs (Decentralized Autonomous Organizations) and blockchain networks, can be complex and innovative. Experts have shared several insights into different models and their implications:

1. Vampire Vaults:

   • Will Villanueva explains the concept of the "vampire vault," where users gain voting power in one protocol by burning tokens from a competitor protocol. This unique approach can lead to interesting DAO mergers and governance strategies where governance voting power is determined by interactions with non-native tokens 1.

2. One Vote Per Person:

   • Vitalik Buterin explores the idea of incorporating one vote per person using systems like Proof of Humanity, which verifies that each participating member is a unique human. This method aims to ensure a democratic approach but acknowledges that it might need adjustments to account for varying levels of participant commitment 2.

3. Quadratic Coin Governance:

   • To balance the power between large and small token holders, Buterin suggests quadratic governance, where a person’s voting power is proportional to the square root of the number of tokens they hold. This design aims to prevent the governance power from being dominated by wealthy token holders while encouraging broader participation 2.

4. Badge Holders:

   • Another proposed method involves governance by “badge holders,” where non-transferable tokens are allocated to key contributors. This approach seeks to create a balanced and high-quality governance layer that can check and balance token holder decisions 2.

5. Addressing Coin Voting Flaws:

   • Buterin critiques coin voting, highlighting issues like low voter participation and the separation of economic interest from governance power. Coin voting often results in low engagement, as individual voting power is perceived as insignificant. Moreover, token holders can split economic and governance interests, undermining the system's integrity 3.
     
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     Unlocking Governance Power
     00:47:57
     
     2
     Reinventing Governance
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     3
     Diverse Governance Strategies
     00:53:31
     
     4
     On Chain Governance
     00:41:20

6. On-Chain Governance:

   • Chris Burniske and Jesse Walden discuss the challenges in on-chain governance, such as low participation rates and the need for more sophisticated systems. They suggest integrating on-chain reputation systems and other metrics to enhance governance processes and ensure participation is meaningful and resistant to manipulation 4.

Different models aim to address specific inefficiencies and challenges within governance structures to ensure fair representation and effective decision-making in decentralized networks.