@donhylo
@donhylo
@donhylo
@donhylo
@donhylo
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very low participation ~4.5%
source: Notes on Blockchain Governance
very unequal wealth distribution
Collateralised Debt Position
cryptocurrency, assets, etc.
stablecoin
@donhylo
collateral
dai
$300
$180
@donhylo
Reference [Dollar]
Stablecoin [Dai]
stable
unstable
risky
@donhylo
market forces
market keepers
reserve of value
governance parameters
oracles
global settlement
off–chain reserves
@donhylo
to reach consensus
about an objective state
@donhylo
to reach consensus
about matters mostly subjective
@donhylo
source: Blockchains are Governance
@donhylo
in the context of blockchains
every node on the blockchain network implements a version of the protocol
@donhylo
@donhylo
@donhylo
(preferences or types)
@donhylo
tokens
@donhylo
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@donhylo
source: Vlad Zamfir | Taipei Meetup
@donhylo
governance process
decisions
participants
stakeholders
structure
behavior
information
incentives
internal
external
formalised
institutionalised
@donhylo
@donhylo
@donhylo
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On-Chain
Off-Chain
@donhylo
@donhylo
"Governance is a process, if it's not a process it's arbitrary and probably random. It will only work effectively if it's a process. On–chain governance is simply the effective execution of that process."
gavin.wood
"...people who think that the purpose of blockchains is to completely expunge soft mushy human intuitions and feelings in favor of completely algorithmic governance (emphasis on “completely”) are absolutely crazy."
vitalik.buterin
source: Notes on Blockchain Governance
@donhylo
@donhylo
Through a Delegated Proof–of–Stake, 21 delegates get elected to be block producers and verify transactions by staking. All the governance happens on–chain.
An on–chain governance process allows the Proof–of–Stake core protocol to be upgraded automatically.
A combination of Proof–of–Work and Proof–of–Stake allows to get the best of the 2 alternatives.
Governance affect the usage of the service: tokens in circulation, upgrades, fees, internal decisions
Governance affect the infrastructure: consensus mechanism, architecture, attacks, rewards, fees, language
@donhylo
@donhylo
@donhylo
1 voice credit gives you 1 vote
4 voices credit give you 2 votes
25 voices credit give you 5 votes
...
the more voice you want in the issue, the less votes you can cast
@donhylo
| Antoine | Belle | Charles | |
|---|---|---|---|
| Chop | 3 | 1 | 2 |
| Restore | 2 | 3 | 1 |
| Go Free | 1 | 2 | 3 |
Chop prevails over Restore as both Antoine and Charles prefer it to the alternative
Restore prevails over Go Free as both Antoine and Belle prefer it to the alternative
Go Free prevails over Chop as both Belle and Charles prefer it to the alternative
source: Radical Markets
@donhylo
source: Radical Markets
"...most people would be both incapable of, and uninterested in, making informed decisions on proposals to update a computer program, as the questions would involve technical issues of both finance and programming. Some kind of representative system might be necessary, but the representatives would necessarily have discretion, and be vulnerable to political influence, and we are back where we started."
e.posner
"...most people would be both incapable of, and uninterested in, making informed decisions on proposals to update a computer program, as the questions would involve technical issues of both finance and programming. Some kind of representative system might be necessary, but the representatives would necessarily have discretion, and be vulnerable to political influence, and we are back where we started."
e.posner
@donhylo
@donhylo
unstoppable organisations
Aragon is a project that aims to disintermediate the creation and maintenance of organizational structures by using blockchain technology.
We want to empower people across the world to easily and securely manage their organizations.
We provide the tools for anyone to become an entrepreneur and run their own organization, to take control of their own lives.
source: aragon.one
The Aragon Network will decentralise its governance by gradually handing over control of the project to its users.
Aragon Network will be the first community governed decentralized organization whose goal is to act as a digital jurisdiction, an online decentralised court system that isn’t bound by traditional artificial barriers such as national jurisdictions or the borders of a single country.
source: aragon.one
source: Colony website
source: Colony website
source: Colony website
grades
diplomas
certificates
GitHub commits
publications
products built
opinions
spoken languages
social media
XP
What work you did, how much that work was worth, what your peers thought of your work, how long you’ve been doing work.
By completing tasks within the colony, evaluating the quality of other’s tasks, or administrative work like flagging bad behavior.
By domains and tagged with different skills, so that colony members gain influence only in the areas of their expertise.
Persistent and regular contribution toward a colony is the only way to stay influential.
source: The Colony reputation system
source: The Colony reputation system
v.buterin
source: What is a DAICO, EthResearch Forum
developers
investors
More responsible access to funds
Safe refund for investors
51% attack resistant
Susceptible to unequal distribution of tokens
Education of investors is required
Maintaining engagement is required
No weighting votes according to reputation
By Laurent Hardy
Governance is critical and hard because it should allow participants to engage in the decision making process of any project, and at the same time let them feel represented and engaged. Unfortunately, it is often the weak spot of new projects in the blockchain space. We explore the structure of the governance process proposed by Vlad Zamfir, some governance tools, and finally we take a look at a couple of projects to illustrate the concept.
