DAO Thoughts & Learnings 23/08

3 things I learned about DAOs this week

  1. 53% of delegates are ghost delegates. Karma analyzed the Q3/Q4 2022 delegate activity of a few large DAOs and found that on average 53% of delegates do not vote. Even less participate in forum conversations and other governance activities. Some DAOs are already implementing systems to make this more transparent and keep delegates accountable.

  2. Objection phases during voting. Conventional voting phases allow voters to vote for or against a proposal. Aragon and Lido have added an objection phase that follows the conventional voting period. The objection phase lasts 24 hours and allows voters to vote against the proposal or change their vote from for to against. This mechanism makes it difficult, if not impossible, to execute governance attacks that submit large, last-minute votes to pass proposals that otherwise would not have passed.

  3. Easy track voting for councils. DAO committees allow DAOs to increase the speed of decision making. At the same time, committees come with a principal-agent risk, i.e. representatives could take decisions that are not in the interest of the DAO. To eliminate this risk, Lido uses Easy Track Voting, an optimistic voting mechanism that passes committee proposals by default, unless the proposal is vetoed by 0.5% of voters. This mechanism is a great tool to reduce voting load and increase speed of decision making in DAOs.

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