DeFi’s student government problem

Theoretically, governance should be structured in a way that both focuses on the primary users who are the most engaged in the community as well as the largest token holders. A simple mechanism for this may be that governance can be split past just token allocations and instead issued like multi-class stocks, whereby ownership and voting rights are... See more

A simple solution to this problem is something that Compound has created with their vote delegation to governance politicians. The idea here is that the community can delegate their votes to certain politicians that will act on their behalf for governance purposes, and smaller users can pool their votes. The problem is that in today’s world, govern... See more

One of the primary issues regarding protocol resolutions comes from the poor execution of mass proposals. The benefit of anyone participating in governance is that they may all propose changes to the core protocol’s functionality. The problem that arises from this is the mixed bag of nonsensical and interesting proposals that are clumped together i... See more

Much like school governments in high school, DeFi governance is mostly treated as a ruse to convince participants that the process is democratic (coined by Tina He). In reality, a lot of the decision making is generally made at the top and at the expense of end users. A system that forces the aristocrats to be ‘angels’ is generally not one where th... See more

The real power is held by the few — the teachers and administrators

No one really cares about the decisions made, except a handful of people