Our program is designed to transform the grants allocation process by introducing a Vote Escrow mechanism along with financial incentives for voters. The main goal of this program is to facilitate the entry of the next generation of builders and community members into a meaningful space for Public Goods Fundingg.
This research project for a customized Vote Escrow system directly addresses three areas with high impact and ecosystem goals that are crucial for the growth and success of a DAO.
Our research, conducted by Tanisha and other co-authors, indicates that the average voter turnout in a vote escrow system with financial incentives is approximately 38%, whereas the average voter turnout in a system without financial incentives is remarkably low at 0.11%.
This valuable insight will assist us in devising a mechanism to actively participate in grant allocation processes.
Vote escrow serves as a safeguard against various forms of manipulation such as vote buying, vote swaying, and undue influence from large stakeholders. It fosters a secure and fair environment while upholding the principles of decentralization. The potential of this mechanism has already been acknowledged within the ecosystem, with initiatives like Gauntlet, Octant, and Optimism already exploring such designs.
Our research has revealed diverse lock-up preferences among conviction voting participants, with larger token holders (Whales, Sharks, Dolphins) favoring shorter lock-up periods, while smaller holders (Shrimps) prefer longer durations to maximize rewards. This insight suggests that targeting low-staked Shrimps, particularly small token holders, will be particularly effective for promoting longer token lock-ups in this program.
We need to incorporate lock-up windows, voting decay, voting multipliers, and a rage-quit mechanism based on comprehensive simulations and an in-depth understanding of the ecosystem.
Our project aligns closely with strategic objectives, focusing on key areas such as:
The proposed enhancements include the creation of a "Staking universe," allowing users to stake their tokens through activities such as providing liquidity to pools or market makers. The grant money will be utilized to develop and implement these staking mechanisms, aiming to increase the utility and demand for tokens within the ecosystem. Additionally, the proposal introduces a novel application of Vote Escrow to grant allocation, potentially attracting more developers to the platform and inspiring innovation in the creation of new protocols and decentralized applications.
The research findings on different lock-up preferences among token holders provide valuable insights. Tailoring the voting system to accommodate these preferences, such as shorter lock-ups for larger holders and longer lock-ups for smaller holders, directly supports our focus on creating an efficient and user-friendly voting system.