DAO governance is a pain, because we've been doing it the way we've always done governance—
taking time from our day to represent our opinion with votes that barely count.
but on-chain voting opens seven new types of governance:
1. Fork the Winners
who actually wins a vote?
depends on the metrics.
on-chain governance lets us retroactively reappoint winners based on new metrics: quadratic voting, vote decay, penalties for voting on multiple options, etc.
different winners emerge for the same contest.
2. On-Chain Identity
wanna see how often a DAO contributor votes? with others who share their goals? for a winning option?
this is what permissionless data enables.
on-chain governance records our work and preferences—so governance itself can penalize or reward contributions.
3. Contribution-Based Voting Power
should longtime holders have greater voting power? or those who have contributed meaningfully to a DAO?
this is possible on-chain by sharing verifiable credentials or wallet history.
which can disincentivize sybil attacks too.
4. Vote Decay
should voting reward individuals who take strong personal stances? or groups that work together to negotiate shared consensus?
vote decay can reward both: earlier voters win more, but later voters are rewarded for agreeing with others.
only possible on-chain.
5. Voting Rewards
voting is work, social consensus is work, and building relationships to make decisions is the most important work: because it improves how the decision is executed later.
on-chain voting lets voters win rewards automatically for voting—or voting on the winner.
6. Executable Contracts
say a DAO passes a vote to diversify the treasury, sent money to a grant, or mint an NFT.
on-chain voting lets it be executed automatically when the vote finishes.
you can even have *composable governance* with multiple options combined (ie NFT traits).
7. Governance as a Social Network
never forget twitter is a web2 governance platform: each like is a vote to surface top content.
on-chain governance lets anon voters find and—longterm—message each other on-chain.
friends can form decisions, and decisions can form friendships.
you've made it this far, so this is where i get to be shameless.
we're working on building all of the above on @jokedao_ as a bottom-up, on-chain governance platform.
tokenomics for chains have been plagued by two issues:
1. you can't stake your liquidity and use it too (thus rise of centralized staking protocols)
2. governance can be bought
@berachain just released their docs, and it solves both
it's the greatest tokenomics i've seen
1/
like any traditional chain, berachain has its own token, $BERA, for paying gas, trading, etc.
but it also has another token, $BGT, which you earn by staking $BERA
$BGT is *non-transferrable* and can be exchanged for $BERA—but there's no way to buy it
which means two things
2/
first, you've always had to pick whether to stake your token to support an ecosystem (store of value) or use it within that ecosystem (medium of exchange)
chains need both, but that was impossible without centralized staking services
i don’t just mean that value in every sector is in the ability to become a meme
but that memes themselves are now money—and arguably the primary driver of blockchains, toys, etc
lemme repeat:
we’re officially living in the memeconomy
the memeconomy is the natural culmination of a century of consumption that has seen the imploding of manufacturing jobs, rise of automation, and buying as a *hobby*
to invert marx, commodities are now definite quantities of congealed *attention-time* in place of labor-time
what happens when the improvements to everyday life standards have diminishing returns?
what happens when there’s little to invest in besides the giant monolithic corporations that have won?
nobody is admitting it, nobody wants to admit it, nobody should want to admit it, but i am so sorry to say that crypto is 100% the future of advertising
sorry, but you think single accounts that are transparent and interoperable across services that incentivize them to take greater social actions than ever *won't* be a massive boon for consumer profiling?
advertising is one of crypto's *greatest* use cases
now think of how crypto has already unlocked *user-generated advertising*
yes, users are incentivized to market projects they're invested in
but they can also *earn* rewards for getting social media to back their involvement in crypto projects
few realize it yet, but shared sequencers are one of the few genuinely great business opportunities in crypto right now.
here's why:
2/
shared sequencer fans tend to be excited for a simple reason: decentralization.
sequencers just order a chain's transactions—so letting rollups share a *decentralized* sequencer means better MEV protections and censorship-resistance, yes.
but that's not why i'm excited.
3/
as @jon_charb pointed out, you *could* approximate decentralization with a centralized sequencer by handing it to a multisig 😬
but you know what you couldn't do with a centralized sequencer?