QDV - Quadratic Voting

Supports:

• Multi-factorial Consensus
• Credible Neutrality

Context:

In DAOs, the mechanism of voting plays a critical role in decision-making processes, particularly in scenarios requiring collective input on resource distribution such as capital deployment in code bounties, grants, and hybrid investments.

Problem:

Traditional voting systems often enable a “tyranny of the majority” or disproportionate influence by wealthy minority, thus failing to represent the diverse intensity of preferences among all stakeholders.

Forces:

1. Equity vs. Efficiency: Ensuring that voting is fair to all participants while also effective in making optimal decisions for the organization.
2. Minority Voice: Need to empower minority opinions to ensure they can meaningfully influence outcomes.
3. Scalability: Voting mechanisms must handle a large number of participants without becoming cumbersome or manipulated.
4. Incentive Alignment: Balancing the interests of major stakeholders against those of the broader community’s long-term goals.

Solution:

Implement Quadratic Voting within the DAO where each additional vote costs quadratically more than the last (i.e., the cost of n votes is n^2). This allows members to express the intensity of their preference rather than just direction. It curtails the disproportionate sway of large holders of voting tokens and gives more voice to passionate minorities, making it particularly useful for nuanced decisions like budget allocations or project funding.

Therefore:

Utilize Quadratic Voting to enhance democratic participation within DAOs, ensuring that all community members have their preferences adequately represented, especially in decisions about resource deployment.