New DAO Scheme Aims to Make Governance More Efficient
• Researchers at the Singapore University of Social Sciences conducted an appraisal of existing decentralized autonomous organization (DAO) voting schemes.
• Of the eight voting schemes analyzed, “holographic consensus” received the highest aggregate ratings for efficiency, fairness, scalability and incentive schemes.
• The researchers proposed a new scheme combining the best features of all the reviewed methods to create a “more efficient” DAO governance.
Researchers in Singapore Create New DAO Scheme
Scientists at Singapore University of Social Sciences recently created a novel DAO voting/governance scheme after reviewing current methods. This new scheme is designed to be more efficient than existing popular voting schemes and combines what they considered to be the best features of each.
Existing Voting Schemes Analyzed
The team’s paper analyzes eight current techniques for DAO governance and assesses their perceived strengths and weaknesses. These include token-based quorum voting, quadratic voting, weighted and reputation-based voting, knowledge-extractable voting, multisig voting, holographic consensus, conviction voting and rage-quitting voting. The “holographic consensus” scheme received the highest aggregate ratings with “high” marks in all but the “robustness” category.
New Holographic Consensus Mechanism Proposed
Once the analysis was complete, the researchers set out to create “a hypothetical voting mechanism for a purely decentralized and permissionless DAO governance.” To accomplish this they designed a scheme to accelerate conviction voting with a “holographic mechanism.” This method would allow stakeholders to bet tokens against a proposal passing or failing which could speed up approval time for urgent proposals by incentivizing voters with tokens if they correctly predict how others will vote on that proposal.
Advantages of New System
The new system proposes to address known issues associated with existing systems such as fairness and scalability while also providing incentives that motivate voter behavior as well as robustness against attacks or collusion attempts.
Conclusion
This new proposed system offers an innovative approach for improving upon existing popular DAO governance models by introducing elements from several different models into one unified system that should theoretically offer higher efficiency across multiple vectors than what is currently available in today’s market.
