Letting the World Do the Work for You: Governance Legos and the Power of Collaboration

Alessio Frateily

Hatched by Alessio Frateily

Aug 28, 2023

4 min read

0

Letting the World Do the Work for You: Governance Legos and the Power of Collaboration

In today's fast-paced world, we often find ourselves striving to achieve our goals and get what we want out of life. But what if there was a way to let the world do the work for us? This may sound too good to be true, but by understanding how the world works and aligning ourselves accordingly, we can harness its power and make our dreams a reality.

One key aspect of letting the world do the work for us is to acknowledge that the world may not work the way we think it should. We often have preconceived notions of how things should be, and when reality doesn't align with our expectations, we become frustrated and our approach becomes suboptimal. Instead, we need to let go of these expectations and embrace the world as it is, finding ways to work within its existing structure.

When it comes to governance, this principle holds true. The concept of "governance Legos" allows us to piece together different elements to create a system that aligns with our needs and goals. One such element is signal voting, which involves token holders signing their votes with a public-private key pair. This off-chain method allows anyone to verify the votes and their token ownership, without the need to pay gas fees. Signal voting relies on platforms like Snapshot or peer-to-peer networks to broadcast the votes, ensuring transparency and accessibility.

However, signal voting alone is not enough to make a significant impact on the blockchain. To have a tangible effect, on-chain voting is necessary. This involves token holders creating and voting on proposals that are stored on the blockchain. While this method incurs gas fees, it enhances security and decentralization, making the system more robust. Compound's Governor Alpha has become a widely adopted on-chain voting system, setting the standard for governance in the blockchain space.

Another important aspect of governance Legos is the concept of multisig, where a fixed number of addresses share administrative power. This allows for a more collaborative decision-making process, as a subset of these addresses must come to a consensus to execute admin commands. Gnosis's Safe contract has been instrumental in implementing multisigs on Ethereum, enabling efficient administration of protocol contracts and on-chain treasuries.

By combining signal voting, on-chain voting, and admin multisig, we can create a comprehensive governance system that delegates authority to a committee while ensuring the will of the token holders is accurately executed. Snapshot, a popular governance tool, utilizes signal voting for free voting accessibility, relying on admin multisigs to carry out the on-chain execution of proposals. However, Snapshot has recently announced its partnership with the reality.eth oracle, which will enable the execution of proposals on-chain, leveraging the benefits of both signal voting and on-chain voting.

This lifecycle approach to governance allows for a seamless flow from idea generation to proposal execution. It utilizes the free step of signal voting to encourage the generation of new ideas while relying on the secure step of on-chain voting to protect the integrity of the contract and treasury. Both Uniswap and Compound have recently implemented on-chain votes to delegate spending authority to their respective multisigs. Uniswap introduced the Uniswap Grants Program, followed by Compound's Grants Program, showcasing the power of collaboration and decentralized decision-making.

In conclusion, letting the world do the work for us is not a far-fetched idea. By understanding how the world works and aligning ourselves accordingly, we can harness its power to achieve our goals. The concept of governance Legos, incorporating signal voting, on-chain voting, and admin multisig, provides us with the tools to create effective governance systems that promote collaboration and transparency. To leverage this power, here are three actionable pieces of advice:

  • 1. Embrace the reality of how the world works: Let go of preconceived notions and adapt to the existing structure. This mindset shift will enable you to find innovative solutions and work within the system rather than against it.
  • 2. Explore the power of signal voting: Take advantage of off-chain voting methods like signal voting to make your voice heard without incurring gas fees. Platforms like Snapshot provide accessible and transparent voting systems for token holders.
  • 3. Combine different elements for comprehensive governance: Consider incorporating on-chain voting and admin multisig into your governance system to enhance security, decentralization, and collaboration. Utilize existing tools like Compound's Governor Alpha and Gnosis's Safe contract for efficient administration.

By following these steps, you can tap into the power of letting the world do the work for you and unlock new possibilities for success in your personal and professional endeavors.

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