If you had read carefully, youâd notice that Iâm addressing the DAO issue, specifically its further decentralization, including decision-making. Therefore, for the DAO to be able to make decisions not the way the team wants, but the way the community wants, while considering the teamâs input (i.e., everyone votes, but the teamâs vote doesnât exceed 50% of the total voting power like it does now), that would be a true DAO. The only thing left is to attract more funds into staking.
Thereâs another option, which is to somehow increase the tokenâs price, and here the Onchain Foundation could help. However, even now, Lisk is not very appealing for staking (which exacerbates the decentralization issue). To earn 20% annually, you need to lock everything for 2 years, which is very risky (considering that unlocking earlier comes with a huge penalty). Itâs likely that we need to combine an increase in staking rewards with a price increase for the base asset, i.e., Lisk, and also fix the Voting Power boost mechanism so that it depends on the lockup period, not on the pause, which is more logical.
All of this combined would significantly improve the decentralization of decision-making in the DAO and reduce the influence of the teamâs votes.
By the way, Now the team(I mean Max, Oliver and the team exactly) has together a veto right(they just need to do nothing or vote NO)
The main problem of people not stacking is complexity. You have to buy lisk on crypto exchange, send it to lisk wallet and then send your funds to another address etc. some people might be even afraid that they type something incorrectly and lose their tokens. Also freezing funds for long period of time is not good when you get -50% value over 2 years or so. We need automated stacking even for people holding their tokens on crypto exchanges. Instead of complicating things I suggest to delete stacking system completely and replace it with deflationary system. How? Simply by reducing total token max cap by time. It could be constant every day burning system that will increase token value set to last for example 20 years. We may for example set that burning will end when max supply will reach 200m lsk tokens this is 50% decrease. All people will benefit and there will be no need for stacking. When it comes to voting all people will be able to vote and their vote power will depend on their number of tokens on their wallet. If they decide to vote their wallets will be locked for a period of a vote. Ideally it would be best if somehow people having lisk on crypto exchanges will have opportunity to vote without the need of sending lisk to personal wallet. I donât know if it can be done itâs just suggestion. Voting power could be detected and calculated automatically by wallet address. Just knowing your wallet address and typing it for voting mechanism by yourself would do the job. Also team lisk, lisk DAO and Lisk Foundation should have separate voting pool which will be for example 30% out of 100% voting power allocated for them. It means 30% lisk team and 70% community decission or something like that.
If I understand correctly, what we want to discuss is not exactly how the voting protocol works, but the life cycle of the proposal?
For example, when to create thread, what category one should choose, when voting should start etc.
If thatâs the case, I think protocol related stuff should be discussed separately since that would be another big topic.
If I still comment on the protocol, I think it doesnât make sense to change the protocol of voting / staking now.
First reason is that we aim to have decentralized sequencer, and ideally we want to use LSK as staking for that. Current staking solution is an intermediate solution until then.
That will strongly align the success of the Lisk network and DAO participation / staking because the profit the network will make will be rewarded to the stakers.
More than the UI, assuming the DAO participation is for advanced community members, aligning the motivation towards success of Lisk Network is important.
If staking gives good reward if Lisk Network is successful, and the community can influence the network to be successful, it will be in a good cycle.
Idea to detach staking and voting is hard especially with onchain governance with the treasury. The voted idea affects the future of Lisk, and I donât think it makes sense to be decided by people who donât have stake in it. Especially with the onchain governance, it is security concern as well.
For instance, in ultimate case, someone can buy 3M LSK, vote to get all 6M LSK personally, and sell all. (DAO attack is quite creative)
Thatâs also why quorum is quite high so that itâs not easy to pass the proposal.
Of course there will be some areas that require certain rules but general idea is to allow voting without need for stacking which equal to freezing tokens. Same address can vote only once and for example only can vote if not received any tokens or changed wallet balance in past 14 days. We could even leave stacking option. I think we should focus on how to make voting simpler for people.
Today situation looks something like this: 70% people donât bother and keep their tokens in their wallets or crypto exchange. Another 30% meaby is stacking. That means only around 30% of community is voting if not less. The numbers are more or less but generally fewer people are voting than not voting. Even if we allow to vote for everyone not everybody will vote.
If we reach at least 50% participation it will be success.
