Power Protocol is a new model launched by Waves Protocol, changing the typical easy DAO governance mechanism.
To comply with The blockWaves Protocol is launching a new DAO governance model termed “Power Protocol,” to reduce voter manipulation, hoarding, and indifference.
The DAO is viewed as the backbone of numerous decentralized applications (dApps), this kind of as Uniswap, Compound and Aave, wherever token holders propose and vote on adjustments or updates that have an effect on the potential of the token task.
DAOs now operate on easy governance designs (easy token governance), wherever Voting electrical power is proportional to the amount of governance tokens the holder has. grossly understood, the far more tokens you have, the far more electrical power you have in your hand. It is this mechanism that has induced hoarding and agonizing speculation, corrupting the authentic objective of the DAO.
Speaking of the over, Waves founder Sasha Ivanov commented:
“Simplified token governance appears desirable on paper, but it is not sufficient for a normal DAO. This model only gains entities that hold substantial quantities of governance tokens and use them to lobby the end result of the DAO vote. If it stays unchanged, the terrible guys will carry on to cheat the process.”
Therefore, Sasha Ivanov formulated a new “Power Protocol” DAO architecture, officially launched in January 2023, to fix this dilemma. The new model adds accountability and transparency to the DAO governance architecture, combining effectiveness metrics (KPIs) with economic rewards or penalties. While fantastic habits is rewarded with tokens, terrible deeds are topic to sanctions this kind of as grade-cutting, depletion of held tokens, and even their destruction.
In addition, Power Protocol will situation an airdrop of Electrical power tokens, based mostly on criteria made a decision by the local community. Waves Power DAO was the 1st DAO to use the Power Protocol model.
Prior to the over information, WAVES had a rather constructive response, surging almost five% to $two,565, its higher from in excess of two weeks in the past and trading all around the $two.43 deal with.
However, the easy governance model has been criticized numerous instances in the previous. An instance is the situation of the founder of Maker Rune, Christensen, who manipulates the governance vote to divide MakerDAO into numerous smaller sized DAOs. StBinance was when accused by the founder of Uniswap of employing consumer money to manipulate governance votes. A handful of days in the past, Vitalik Buterin also criticized this model and they want to make improvements to decentralized governance.
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