A New DAO Model Initiative from the Waves Blockchain Founder! The model is designed to increase accountability by introducing performance measures, rewards and punishments.
Sasha Ivanov, the founder of the Waves blockchain, says that he has a way to solve some of the obvious governance weaknesses of running decentralized autonomous organizations (DAO), including the risk of fraud and lack of interest. voters. The DAO is the backbone of many decentralized applications (dapps), such as Uniswap, Compound, and Aave, where token holders propose and vote on changes or updates that affect the future of the service.
Existing DAOs are based on a simple token governance model with a weight-based voting system that provides voting power based on the number of token governance a holder has. This leaves them vulnerable to exploitation by well-informed capitalists who can also take advantage of ill-informed and apathetic voters.
“The simple metaphor is attractive on paper, but ultimately proved to be insufficient,” Ivanov said in a statement. “There is not enough detail put into the form of government, those who do wrong and those who want to undermine the decision-making process are unimpeded and will continue to reform the system.”
Instead, Ivanov created the Power Protocol, a set of rules and incentives to encourage community involvement. The standard is designed to define and measure key performance indicators (KPIs) and provide financial rewards and penalties to support community support, transparency and efficiency. The first DAO using Power Protocol was Waves Power DAO.
These KPIs, if met, result in rewards for participating communities. On the other hand, if they are not met, a country may suffer because a part of their government symbol is destroyed. This can help prevent predatory behavior from large token holders who may vote positively on initiatives just to gain token rewards. Permission rules can be applied to other DAOs. By limiting the voting rights of individual users, the model can reduce the risk of harm from malicious actors and increase the effectiveness of any DAO, whether financial, charitable, private or governmental.