Discussion Proposal: Commoditizing Governance Votes—Is It Feasible? Is it Ethical?

Title: Commoditizing Governance Votes for Increased Participation and Transparency**

Abstract: This proposal seeks to explore the feasibility of allowing TINY token holders to rent or sell their governance votes through smart contracts. By formally integrating this mechanism into the Tinyman protocol, the aim is to increase participation, enhance transparency, and potentially maximize the value of TINY tokens.

Objective: To investigate the potential benefits and challenges of commoditizing governance votes within the Tinyman platform, with the goal of increasing community engagement and ensuring a more transparent governance process.

Background: Currently, governance in many decentralized platforms, including Tinyman, can be influenced by smaller groups with significant holdings. Additionally, informal markets or “shadow economies” may already exist where votes are traded indirectly. By formalizing this process, we could democratize access to governance and ensure that all community members have the opportunity to participate and benefit.

Details:

  • Proposal Mechanics: This proposal suggests the implementation of smart contracts that allow TINY token holders to rent or sell their voting power. These contracts would enable users to exchange their votes for ALGO or other tokens, integrating this capability directly into the Tinyman platform. The process would be transparent and available to all, potentially reducing the influence of any “shadow economy.”
  • Expected Outcomes: Increased participation in governance, greater transparency in voting processes, and a potential increase in the value of TINY tokens as governance becomes more dynamic and accessible.
  • Implementation Timeline: The proposal would begin with a feasibility study to assess the technical and ethical considerations. If viable, development could proceed in phases, with initial implementation focused on creating and testing the smart contract functionality.
  • Challenges and Considerations: Risks include the potential for vote centralization, where wealthier participants could buy up votes, and the challenge of maintaining ethical governance practices. Additionally, the technical complexity of integrating such a system must be carefully managed to ensure security and usability.

Benefits:

  • Maximized Gains: TINY holders could monetize their votes, potentially increasing both the value of TINY and overall participation in governance.
  • Inclusivity: More community members might engage in governance if they could earn from their votes, leading to a more active and invested community.
  • Ethical Considerations: The system could incentivize ethical voting, similar to how white hat hackers often choose ethical actions even when less lucrative.

Metrics for Success:

  • Liquidity Levels: Monitor any changes in the liquidity of TINY as a result of increased governance participation.
  • User Participation: Track the number of participants in governance and the volume of votes traded.
  • Community Feedback: Collect feedback from the community to assess satisfaction with the new system.
  • TVL Growth: Observe any changes in Total Value Locked (TVL) as governance becomes more dynamic.

Budget and Funding: A detailed budget would be determined based on the feasibility study. Funding would likely involve allocations of TINY tokens for development and potential incentives for early adopters.

Additional Information: Comparative analysis could be conducted with other platforms that have experimented with novel governance mechanisms, though none have implemented vote commoditization to date.

Approve the exploration and potential implementation of commoditized governance votes within the Tinyman protocol?
  • Yes
  • No
0 voters
2 Likes

In other words, I think it could be implemented by creating a smart contract for automatic monthly distribution and collection of $voTINY tokens with clawback for $TINY staking.

And it would be great if there was a market like order book dedicated to $voTINY. It would be interesting to see if the Tiny Man team or some other project could create it.

2 Likes

The proposal to commoditize governance votes within the Tinyman protocol seeks to enhance participation and transparency through smart contracts, allowing TINY token holders to rent or sell their voting power. By formalizing this system, it aims to democratize access to governance and reduce the influence of wealthy participants who may dominate decision-making. The expected outcomes include increased community engagement, a more dynamic governance process, and potentially higher value for TINY tokens. While there are significant benefits, including monetization of votes and overall inclusivity, the initiative also presents challenges such as the risk of centralization and ethical governance dilemmas.

Implementation would begin with a feasibility study to address both technical requirements and ethical considerations. Metrics for success will focus on user participation, liquidity levels, community feedback, and Total Value Locked (TVL) growth. The proposal emphasizes that a transparent market for governance votes could mitigate the risks of existing informal vote trading. Ultimately, exploring this initiative may not only transform governance within Tinyman but also offer a new precedent for decentralized platforms. Analyzing the outcomes of this proposal could lead to valuable insights for other protocols considering similar governance innovations.

3 Likes

Thanks to everyone for the feedback so far!

Also, I really like the idea of creating $voTINY tokens for governance. By issuing $voTINY when $TINY is locked, holders would have the flexibility to sell, rent, or pull their votes, making governance participation more dynamic.

2 Likes

The 1st of each month would be a good day to issue $voTINY. Voting is at the end of the month, so it gives the user time to make a choice, as they can consider and buy or sell in the period leading up to that time.

Then, at the same time the $voTINY is issued, the previous unused $voTINY is clawed back to avoid duplication.

By tokenizing voting rights, their value and price can be visualized, and it is interesting to examine the movement in the Explorer, from which new services and projects may be born.

2 Likes

I agree completely. Please everyone else, feel free to contribute if you feel so inclined.

2 Likes

I think this would be a great mechanism to delegate voting power.

4 Likes

My only suggestion is to call it $veTINY (Vote-Escrowed $TINY) in line with other DeFi platforms on other chains so the naming schema is familiar

3 Likes