🤝DAO Governance

DAO Voting Mechanisms

DAOs are decentralized organizations controlled by their members, using blockchain-powered smart contracts for transparency and trust. Various voting mechanisms exist to facilitate decentralized decision-making and community participation.

  1. TOKEN-BASED QUORUM VOTING requires a specific number of members to participate for a proposal to pass.

  2. PERMISSIONED RELATIVE MAJORITY focuses on "for" and "against" votes without a minimum requirement.

  3. RAGE QUITTING incorporates sponsorship and a grace period for voters to withdraw support.

  4. QUADRATIC VOTING ties voting power to financial power.

  5. CONVICTION VOTING aggregates community preferences over time.

  6. HOLOGRAPHIC CONSENSUS combines prediction and betting.

  7. MULTISIG VOTING balances central authority and decentralization.

  8. LIQUID DEMOCRACY delegates voting power to trusted experts.

While no perfect solution exists, each mechanism has its advantages and challenges. As blockchain technology advances and DAOs evolve, new voting mechanisms may emerge or existing ones may be combined for better solutions.

Source: www.limechain.tech

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