Can DAO become the next big thing? Part 02

In the last article, we learned about the One-Person-One-Vote (1p1v) protocol and the One-Stake-One-Vote (1s1v) protocol for voting in a Decentralized Autonomous Organization (DAO). In this article, I will cover the other two voting protocols that can be adopted for reaching consensus.

Quadratic Voting (QV) protocol

The concept of Quadratic Voting was proposed by Lalley and Glen Weyl. Quadratic Voting includes buying of votes, and an individual can buy an unlimited number of votes by paying tokens. Suppose an individual has to cast ten votes, then the voter has to deposit 10²=100 tokens in the fund. The tokens are returned on a per capita basis to the votes once the outcome is revealed.

This concept was developed for the real world scenario. When the protocol is applied to the blockchain technology, the concept does have some loopholes. Taking a Sybil attack into consideration, if a voter wants to cast ten votes, he can create ten anonymous accounts and cast the votes by depositing only ten tokens per account. For the concept to work on a blockchain network, the true identity of the individual has to be linked to the account.

Knowledge-extractable Voting (KEV) protocol

The decision of Knowledge-extractable Voting (KEV) protocol is based on knowledge. This protocol was developed to arrive at a decision that is independent of wealth. Knowledge is obtained through education and experience, and it cannot be transferred, unlike wealth. Nor can you buy knowledge on any exchange, unlike tokens. Knowledge is non-fungible and serves as an appropriate parameter to weigh the power of the voter.

In Knowledge-extractable Voting (KEV) protocol, the One-Stake-One-Vote (1s1v) concept is followed. The difference is that an additional token is staked along with the primary tokens. This additional or second token is called the ‘Knowledge token’, and these tokens cannot be purchased or transferred.

An individual can earn knowledge tokens by participating in decision making and proving his knowledge to the other voters. The number of knowledge tokens held by an individual quantifies the person’s expertise, and this expertise determines the power of the voter in the ballot.

The quorum comes up with the decision with the majority of the voters voting against or in favor of the proposal. The voters who fall under the minority, have their primary tokens slashed and their knowledge tokens are burned. An amount equal to the square root of the knowledge tokens is burned if the voter is not able to prove his knowledge by being a part of the majority.

Despite the challenges, blockchain evangelists believe that the DAO can play a significant role in organizational decision making and utilization of finances.

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