DAO Reputation
This page describes how Reputation in DAO governance can be used to solve various issues
Last updated
This page describes how Reputation in DAO governance can be used to solve various issues
Last updated
A decentralized Autonomous Organization or DAO is an organization that is not run by a central governing board, meaning that no single authority can decide what happens. The decisions are made by members of the platform, meaning that if a funding decision or investment strategy is necessary, holders of the native tokens of the platform can vote. People can submit proposals of changes they want to implement in the platform and initiate a voting session to determine if the feature is incorporated. A smart contract automates the platform’s activities based on the tenets integrated into its code.
At present, DAOs have developed across many platforms, including social media, agreement platforms, project principles, and so on. Moreover, it is more like a bottom-up management company, where members rely on their personal abilities and subjective wishes to divide labor to build the entire DAO. The DAO will reward members based on their contribution value.
In the upcoming Metaverse, DAOs may well be at the core of governance models, as it returns the rulemaking and governance power to the public, promoting the complete decentralization of the Metaverse.
The concept of DAO in Web3 is beautiful,But still there are a lot of issues in it:
Most DAOs use the digital assets of their members as key indicators. For example, voting is based on the number of tokens, and rewards are based on the proportion of digital assets held by the members. This mechanism kills the true essence of dencentalizaion where governance comes monetarily and also makes members with a small proportion of tokens unwilling to invest time and energy in governance, due to the imbalance of investment returns and voting power.
In a fully autonomous DAO system, the decision should be based on the number of votes. But sometimes there are conflicts between the opinions of the development team and the interests of community members. Sometimes the DAO development team will directly ignore the community opinions, resulting in accusations of centralization. The alternative is to completely follow the DAO community, which may result in constructive opinions not being adopted.
So from the above stated problems,we have to find the incentives that that should be stup for the DAO members that participate in governance.Based on its own technology we at IDentriX have setup a reputation scoring system for each DAO member.
While entering a DAO,users will have to verify their identity using IDentriX wallet and verify their on-chain/off-chain assets, to see whether they have similar experience or capabilities, and so on. After the initial verification,users will be given an initial value and mark to help better participate in DAO.
When participating in DAO governance, the time spent and contributions by a user in the DAO will be recorded. Contributions would include voting, suggestions, operational work, and so on.
The reputation system will make a comprehensive score based on the above records. For example, the more DAOs you participate in, and the longer, and the more active you are, the higher your score will be. In addition, corresponding weights can be set when designing the reputation scoring model, such as reducing the weight of digital assets and increasing the weight of participation.With reputation value, DAO can dynamically divide rights based on reputation. The higher the reputation value, the greater the power. This power could be manifested in the right to more votes (right to speak) and the right to more DAO dividends.
Implementing the above records will make the voting and participating mechanism in a DAO more decentralized:
The acquisition of rights and benefits is no longer difficult for ordinary members.
The development team, like ordinary members, needs to rely on contribution to gain the right to speak.
It can encourage DAO members to become more active, and balanced decision-making between the development team and ordinary members.
In the future, DAOs will inevitably become the organizational form of the decentralized world, with more blockchain technologies being absorbed by DAOs, allowing for the quick and healthy development of ecosystems.
Good to know: depending on the product you're building, it can be useful to explicitly document use cases. Got a product that can be used by a bunch of people in different ways? Maybe consider splitting it out!
