What Are The Common DAO Voting Mechanisms

What Are The Common DAO Voting Mechanisms

It should be noted that the Digital Business Models of common DAO voting mechanisms are as new as the Decentralized Autonomous Organizations or DAO. Given the relative infancy of this particular type of decentralized Web 3 technology, it is to be expected that there will be change and growth. This will inevitably include at least some growing pains along the way.

Bearing that fact in mind, it should be understood that the voting mechanisms that allow the DAO to function will also experience a certain amount of growth and change. There will also be an introduction of experimentation into the mix as research leads to further developments to increase the efficiency of the DAO.

What Are The Common DAO Voting Mechanisms?

  • Conviction voting
  • Holographic Consensus
  • Liquid Democracy
  • Multisig Voting
  • Participatory Payment And Reward Voting
  • Permissioned Relative Majority
  • Quadratic voting
  • Rage Quitting
  • Token-Based Quorum Voting

What Is DAO Voting

The entire purpose behind the DAO is the ability for each participating member to have an active say in the daily operations of the business. Voting is the process by which the members of the DAO can introduce a new direction, project, or plan for the company. It is also how determinations are made as to which suggestions will be followed and operations may proceed.

If there is any major challenge to date, it is the ability to encourage those holding the governance tokens to vote and actively participate. The inability to mandate participation and, for better or worse, the general apathy of anyone not thoroughly vested in the DAO make it difficult to create an efficient business enterprise with this model in its current form.

What Is Conviction Voting in a DAO?

Conviction Voting is a means by which it becomes easier to allow members of the DAO to vote when there are numerous options. This is especially true if there is no immediate rush and added time can be used in order to ensure the best decisions are selected. The holder of the governance token can place their vote early, and the longer their vote remains the same, the more strength or validation it has. If additional options are introduced and the votes are moved there, they hold less value.

What Is Holographic Consensus

The introduction of the Holographic Consensus was designed to address issues of scalability and feasibility in terms of business operations. This DAO voting mechanism allos the voting members to predict what proposals will succeed and which ones will fail. Tokens are awarded to those who vote for the winning proposals and losses may be incurred by those who vote for proposals that are not accepted.

What Is The Liquid Democracy DAO Voting Mechanism

Liquid Democracy resembles a more representative democratic form of DAO voting than an actual democratic process. Whereas each and every voting member of a democracy would have a vote, in the Liquid Democracy voting mechanism the voting members may allow representatives to vote based on their particular skill sets and ability to make better or more informed decisions.

What Is The Multisig DAO Voting Process

This DAO voting mechanism is designed to increase the efficiency of the DAO and is adept at such a purpose. In this type of DAO voting, a central committee that has been previously selected by the governance token holders will have the capacity and authority to decide on matters concerning the daily operations of the DAO. Detractors of this type of voting system indicate the need for placing members on specific committees depending on the subject matter of the vote and the expertise of committee members.

What Is Decentralized Incentive Based System or DIBS DAO Voting Process

The DIBS or Decentralized Incentive Based System voting mechanism is established in order to encourage participation and DAO efficiency while at the same time mitigating the potential losses for those voting outside of the winning proposals. An additional “gas fee” is charged to allow the members to cast their votes. A portion of the gas fee will go to an account to be shared by those who have voted for the winning proposal. The other portion of this fee will be deposited into the DAO “vault” to increase the value of the governance tokens and benefit all of the DAO members.

What Is The Permissioned Relative Majority DAO Voting Mechanism

This type of DAO voting mechanism seems a bit hazardous as it allows even a single member to submit a proposal and potentially to cast a vote and close the voting before other members even know a vote is taking place. There is additional concern that such a simple majority voting requirement may subject the DAO to internal politics and otherwise allow for the system to be abused.

What Is Quadratic Voting

This type of DAO voting mechanisms allows those with more financial capital to have more leverage in the DAO from a theoretical standing. In such a scenario multiple votes may be purchased with the cost of the votes increasing depending on how many votes they wish to purchase. Thus, someone may pay one USDT for one vote, whereas five votes would cost five squared, or 25 USDT, with 5 USDT being charged for each vote. It does seem that such a system may ensure that people who are voting for a proposal have a vested financial interest, and have no fear about investing further in that proposal.

What Is Rage Quitting

The type of DAO voting mechanism requires that any proposals have individual sponsors before they can be approved and make it to the voting process. Once the proposal has received sponsors and been approved, it will be introduced during a grace period where sponsors may continue or deny their support for the proposal. After the time set forth in the original Smart Contracts, the proposal will be introduced to all of the voting members of the DAO for a final vote.

What Is Token Based Quorum Voting

This is effectively the foundation for the DAO voting mechanism which has been expanded upon in order to introduce the other DAO voting mechanisms set forth herein. Token based quorum voting allows anyone and everyone in possession of the governance tokens to have a vote on any and all proposals as may be introduced for the DAO. Among the biggest challenges in this type of DAO voting mechanism is the ability to encourage members to actively participate in the vote in order that a true quorum can be reached.

DAO Voting Mechanisms and Conclusions

Adpost continues to work to bring people together with the Adpost NFT Marketplace, the “Me In The Metaverse” Art contest series, and by introducing an increasingly interactive Web 3 experience for visitors and users of the site. By introducing all of these features incrementally, Adpost will be better able to determine a more specific fit for users of this website.

In terms of the DAO itself, and the independent and unique DAO voting mechanisms, there is still a great deal of unknown territory that must continually be explored. It is a very real possibility that the DAO voting mechanisms will continue to see changes, including the integration and segregation of some of the ideas covered here, as they continue to explore different options to best fir their own unique needs.