Locked wealth based

Locked wealth based approach for determining voting power

Overview

Locked wealth based voting power is determined based on the amount of locked wealth the voter has. This is an improvement over a simple wealth based approach as it helps to prevent voters from suddenly buying and selling large amounts of the ecosystem's coin for the purpose of influencing the vote in a negative way and then quickly exiting the ecosystem. Locked wealth could come in the form of staked coins or a time based locking process that is used for certain treasury and ecosystem decisions.

Very low execution & scaling complexity (Score - 5)

All of the required data is available on-chain to calculate how much wealth each wallet has and a locked coin mechanism can also be introduced. Locked wealth based voting power for important voting decisions helps to remove the attack vector of suddenly changing wallet sizes. This approach can scale to handle a large population of voters.

Moderate fairness for network decisions (Score - 3)

Voters that have their coins locked when making important network decisions can help with making a fairer approach for voting power due to the fact that voters would face more of the benefits of consequences of their decision making. If voters aren’t able to maliciously vote and quickly exit the ecosystem by selling their assets there is a higher probability that voters will be more incentivised and aligned with making better decisions to maintain and grow the value of their locked assets. Apart from this the other factors are the same as the wealth based approach where this approach gets less fair over time as tax contributions become a more important part of why the network is able to survive and grow.

Low fairness for treasury decisions (Score - 2.5)

A locked wealth approach is slightly more fair than a wealth based approach without locked coins as now there is a reduced chance for malicious actors to suddenly influence a treasury decision with bad intent that potentially wastes the ecosystems treasury assets. However a wealth based approach still has the same issue that it is not fair over the long term as the wealthy individuals don’t have to contribute anything else to the ecosystem but would be given perpetual control and influence over how other people's tax contributions are spent rather than the people who actually contributed through their own transaction fees.

Total score = 10.5 / 15