Proposals to Structure Switcheo Foundation as a Fully Decentralized Organization - Voting Element
I think it is crucial to structure a decentralized organization from the beginning instead of building a product and then figuring out its structure and governance etc.
So, this forum is a great place to start with proposals or ideas to structure a fully decentralized organization. Perhaps we can take some elements of the DAO model proposed by DAOstack.
What strikes me most in their whitepaper and I think is essential in a decentralized organization is a reputation based voting system which makes a lot of sense instead of token holders having voting influence based on the number of tokens they own.
Recently, Compound announced their community governance. In their model, token holders can delegate their voting rights to any address. That’s also an interesting model to look into.
Perhaps Switcheo Foundation can structure a system with a combination of both elements for their voting? Should the Switcheo Token (SWTH) play a part here?
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There needs to be a use for the SWTH token, otherwise, what's the point?
Could be for governance, proposal voting, staking, etc. Not sure what that looks like at this point but many SWTH holders would like some clarifications on to what the future of SWTH looks like.
I think we should think very carefully before deciding on a governance model.
In the first Compound governance vote, they approved the use of Tether, which I consider risky.
Maker DAO is also a model to watch. Recently Maker suffered some problems that generated financial losses in the collateralization of the DAI, as a consequence the Maker DAO issued more coins, increasing the supply, to sell and cover the losses, making the collateralization return to normal.
The financial model of Maker's token and its governance has been criticized by the community, both in terms of the value of the token and in the voting system.
Digix DAO recently decided by vote to end DAO recently and there was a lot of controversy in the governance system and the usefulness of the token.
As we can see, DAOs are a form of governance that needs to be improved and much in function of game theory, token distribution, community participation, token usefulness, among other factors. You have to think about how to prevent big whales from colluding to win the system.
@alt_account The use of the SWTH was already announced in the Tradehub announcement article. You can read it here: https://blog.switcheo.network/introducing-switcheo-tradehub-the-next-evolution-in-decentralized-cross-chain-trading/?utm_source=telegram&utm_medium=social&utm_campaign=switcheo-tradehub
@redsparrow As DAOs are still at an early stage, I foresee a lot of trial and error as this space matures. Plutocracy is a recurring issue in voting though I think a well thought out reputation-based model with mechanisms that deter whales from colluding the system would be effective. For example, a mechanism to stop whales from swaying the vote at the last minute would be useful.
So, I suppose the voting structure from the get-go has to be well thought out based on the type of platform, product etc