Incentivizing DAO participation: Ideas and Strategies

Encouraging real participation in the DAO without incentivising pathological behaviours is a real issue. I think these proposals need a lot of work, though, as they have substantial flaws as currently formulated.

I think this will be counter-productive, and will encourage delegates to both campaign at the expense of other delegates, and to offer bribes to people to delegate to them. A delegate with 200k votes isn’t doing any more work than a delegate with 100k votes; if delegates are going to be rewarded, it should be based on participation, not on voting weight.

This is easily evaded by simply delegating your votes to a second account under your control. If most rewards come from being a delegate, users will do this as a matter of course to maximize their earnings. I would even expect “contract delegates” to pop up that simply vote “no” on everything and give most of the delegate reward to the people delegating to them.

This is also easily evaded by having multiple accounts.

A simple strategy that may work would be to allow users to “stake” their ENS tokens in a contract that requires they be delegated, and gives staking participants additional ENS tokens from the DAO allocation. If there are no marginal benefits to voters or stakers for selecting a particular delegate, users can have a free choice without impacting their return - and giving ENS tokens to people staking acts to gradually increase the voting weight of those most involved, at the expense of people who don’t participate in governance.

Independently, and regardless of this, we will need to compensate active DAO participants somehow - not just delegates but anyone making meaningful contributions to the DAO - and that needs to be proportional to impact, not voting power.

11 Likes