How to solve the "free ride" problem in DAO management

Decentralized control always poses a lot of problems. As an example of the chain as an example, in the absence of a relaunch, only participants in deeply rooted organizations (like large fundraisers) would join the administration and add value to the goods, and other bankers will be hitchhikers at check. .

The free ride has a huge impact on the long term development of the tuning, given the simplicity it makes the "car" very heavy. When the contract value increases due to community agreements and other community involvement, contract tokens capture the value. The most obvious is the increase in the value of the token, with For small holders, holders of short tokens are just tokens. But that didn't help. When the price goes up, you sell and remove the hook. This not only negatively affects the value of the currency, but also causes participants to continue to feel unfair and reduce their interest in future services.

Without governance support, voters will not be affected, however, getting the public to participate in governance adding value to the bill., This exchange is very difficult to manage.

This article was written by Alex Kroeger, a former a16z employee and now 0x protocol engineer and data scientist at Coinbase, describing DAO's free traffic issues. manage and propose solutions. All texts translated by Rhythm BlockBeats.

The free ride problem arises when an item or service has private value and has no value to the public. The fireworks display is a good example, and if you are in court you can enjoy the same place as a ticket buyer even if you are watching the show. To act or not, even if you spend the money. Anyone who doesn't buy a ticket can't help but stare at the sky.)

Of course, there are a lot of people who want to see fireworks, but as an employee if you enjoy the personal benefits (the fun of seeing fireworks in person) and not benefit the public (let others see it), then you have to spend money and resources to prepare this rocket, the support will not be enough.

Free tour on DAO Management

The cartoon work of New Yorker Magazine artist Robert Leighton

A good governance environment within DAO can be beneficial for everyone, whether or not insurers are involved in management (consensus building and voting for each consensus).

In my final evaluation, participation is not important as long as there is good management of the environment, but as I know it would not be good if everyone involved in the group worked in the school in fighting with one person.

Moreover, judging from the current situation, the results of the concentration results will turn out to be more robust. If a person is more interested in the whole interest rate, for example by owning multiple symbols in the DAO, they will be more willing to participate in management activities.

Encourage participants to participate in process management

What if, as a person, you could benefit from activity management?

On the other hand, I think we need to reward governance actors more effectively. But on the other hand, it should punish those who do not engage in management and dilute the profits they can achieve by consensus.

Chain governance generally involves two functions: advocacy and voting for agreements.

Writing a consent form is not easy, so referrals should be rewarded accordingly and distributed in the application as an application form, one-time grants, grants, support, and one-time payment. The complexity of the job and the implications of each difference are different, for example correcting faults is easier than rewriting a contract and with less impact.

I think we need to encourage people to do better information, but I don't think we need a similar solution.

In the meantime, the vote should be more legal. DAOs I know of weren't able to hold a follow-up vote, so even non-voters can travel for free. In my opinion, we need to clarify the rewards for participating in the vote and set up a management gift voucher for each person based on the voting number.

Below, we discuss and present solutions to non-trivial problems that may arise from voting.

Participate in anonymous voting

In fact, it is very easy to get a vote the right way up. Regardless of the content of the application, you just have to vote or vote each time, or you just have to vote to win the prize. This idea has now become a reality and @ transmissions11 announced a deal that will allow people to vote against any proposal.

My solution to this is to give the winner more prizes based on the final vote. This approach encourages people to hold tokens for making the best choice after reflection and encourages people to persuade others to accept their ideas.

Voting usually ends at the end of the voting period

Voting is another free behavior, in which voters wait for the ballot to finish and vote when the outcome is clear.

My solution to this is to set aside time for the rewards. Voting rewards are highest at the start of the voting period and gradually decrease as the vote increases until it reaches zero at the end. This will help cardholders keep an eye on future polls and be aware of recommendations before voting begins.

do a lot of unnecessary things

Another great way is that people can do a lot of illegal things and profit from voting.

However, many DeFi contracts, including Uniswap and Compound, come with a few caveats. Under this agreement, the candidate must have at least been satisfied with the strength of the pre-election ballot. A solution to this problem has not yet been finalized, but it has been said that presidential approval (and voting rules) can be removed from the ballot.

If this event is restricted again once, we can further increase the vote to prevent it from happening again.

relaunch of the electoral list

In my opinion, direct elections are not for everyone. Because even if you want to join and invest a lot of time in the management of DeFi, it is difficult to agree on more than two contracts. , and the point is, most people won't spend a lot of time on crypto.

For many DAO token holders, it is good to vote for the powerful vote of community members. The advantage of building voter support is that they vote not only for amateurs, but also for future careers.

Voting ads appear in local newspapers and can be produced using fodey.com.

As usual, the prizes of the ballot papers were distributed at the polling stations. In other words, donations to voters include not only their right to vote, but also the right to vote authorized by their representative.

While this is good for principals, there isn't much encouragement for principals. So in a payment contract you have to give yourself back a certain percentage of your reward, and if you want your preference you can start doing both.

Increase personal ability rewards (higher participation, reputation, orders, etc.)

concludes

DAOs (and most Web3s) have enough space designed to create support plans, so you can build better applications. However, we have yet to see a successful revival of the current DAO model.

Voting giveaways can not only support a change of administration, but also create a competitive market for elections.