What's Next for DeFi Governance
I have to flag a huge gap in the opening statement.
I think a thesis that I've had on why some of the leading DeFi protocols haven't maintained the same pace of growth that they had in 2020 and 2021; obviously [!?] it's in part due to lack of scalable infrastructure, it's important things, like lack institutional on-ramps, but another reason is, I think, as the scope of what these protocols are governing is expanding, it's harder to actually scale governance as you start to move beyond these core teams.
So, nothing at all to do with crappy algorithms that actually spread and exacerbate what could have been localised crashes!? I mean, isn't it supposed to be "decentralised"? If that is truly the case, then it is a very insecure form that allows contagion. Very unlike the internet, that is decentralised so that disruption of multiple nodes does not affect the flow of information.
OK, the discussion is about governance. Pantera Capital Partner on Decentralized Governance of Crypto Protocols
“I think the most common standards I’ve seen emerging are very general. I’ve seen lots of projects either basically be weighted by stake, in terms of your vote, or voting members with specific skill sets into these positions of voting power. But beyond that, I think we’ve seen a lot of experimentation, but nothing has kind of taken off, I guess, and been commonly adopted across many protocols.“
Right, this remains very experimental. IMO, none of them truly work as none of them are able to detect collusion until after it's too late. I suspect a layered approach to governance would work best, to avoid sudden lurches in control.
When they figure out how to detect 'intention' Game Over.
strict KYC would help.
but with anons would need surveillance AI... erm... hold on!