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IntersectMBO / govtool

🔩 GovTool and utilities monorepo.
https://sanchogov.tools/
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research: Exploring the Implications of the 1ADA 1Vote Paradigm on Fairness and Equity #683

Open l-br1 opened 2 months ago

l-br1 commented 2 months ago

from Ronald:

I have been thinking about the 1ada 1vote paradigm and how it is fraught with new social situations which are potentially calamitous, but at the very least they are interesting. For instance when a grant or a loan is given from the cardano treasury, you are also giving that person additional voting power within the ecosystem, which obviously does not happen in traditional governments. borrowing ada pre snapshot then repaying it post snapshot could lead to an abuse of power, especially if you can borrow enough to vote for your grant to be approved . It essentially opens up the possibility to purchase a Drepp position, and presumably at quite a cheap rate as you only need to hold the tokens for a few moments.

Having vote tied to ADA as a representation of stake in the system, where the people who have more invested are more inclined to vote in everyone's best interests because they align, solves for whales- does not hold true if you can just lease voting power.

So I struggle to see how 1694 is going to tally votes that most would agree are fair and equitable.

Is there any way to mitigate this?

https://discord.com/channels/1136727663583698984/1212455034093310027/1226928060998357094

l-br1 commented 2 months ago

suggestions from chatGPT:

Your concern about the 1ADA 1Vote paradigm within the Cardano ecosystem is valid and highlights potential loopholes that could be exploited, particularly regarding the allocation of voting power through grants or loans from the Cardano treasury. This introduces the risk of abuse of power, as individuals could potentially borrow ADA temporarily to increase their voting power and influence decisions in their favor.

One potential mitigation strategy could involve implementing mechanisms to ensure that voting power is tied more closely to long-term stake and commitment to the ecosystem, rather than easily manipulable short-term holdings. This could include:

  1. Voting Power Vesting: Introduce a vesting period for voting power acquired through borrowing ADA, where the borrowed ADA cannot be used for voting until it has been held for a certain period of time. This would discourage short-term manipulation of voting power.
  2. Stake-Weighted Voting: Explore alternative voting mechanisms that take into account not only the quantity of ADA held, but also the duration of holdings and other factors indicating commitment to the ecosystem. This could involve a weighted voting system where individuals with longer-term, larger stake commitments have proportionally greater voting power.
  3. Transparency and Accountability: Implement transparent processes and oversight mechanisms to monitor and audit voting activities within the ecosystem, ensuring that any attempts at manipulation are detected and addressed promptly.
  4. Community Education and Engagement: Educate the Cardano community about the potential risks of vote manipulation and encourage active participation in governance discussions to collectively develop and implement strategies for mitigating these risks.

By implementing these measures, the Cardano ecosystem can strive to maintain fairness and equity in its governance processes, while also preserving the integrity of the 1ADA 1Vote paradigm. However, it's important to recognize that achieving perfect fairness and equity in decentralized governance systems can be challenging, and ongoing vigilance and adaptation may be necessary to address emerging issues and concerns.