Questions about treasury system


#1

I have some questions about the treasury system invented and engineered by IOHK for Cardano


and ZenCash

In short treasuries should provide a funding for a sustainable and democratic evolution of a decentralized system.

This raises some questions that have many similarities with real political/community situations.:

1.) How do you find majorities for evolutions that many recognize as necessary but are very complex/expensive? (let’s say something like inventing a provable PoS instead of wasteful PoW)

2.) who defines the timing for votings? is there something like a monthly submission deadline, and then a general pre-defined scheduling like: 15 days for promotion and discussion, then vote. Or are there different timings for small&simple and huge proposals?

3.) what happens (or better who acts) in case of ultimate urgency? waiting for the next submission deadline is not an option if Twitter and Reddit are full of reports similar to a DAO hack.

4.) what if a majority votes for simplicity’s sake against a minority that must bear the consequences? Let me bring up a real-world example: It’s easy to find a majority on a vote prohibiting farmers from applying pesticides and herbicides. But by far most of this voters are not going to buy organic food. To be more precise: They are not willing to pay a higher price for not quite flawless fruit and vegetables. Such a vote would force farmers to produce fewer goods at the usual discounted price with more work. This closes the circle to my question 1 because thus people instead of voting down a minority could just have started buying much more organic food, and the farmers would have loved to follow this trend.


Voting & delegation questions
Governance system - What's the potential?
#2

My question concerns all of the above but also , to what extent to we expect to be giving or lending our voting rights to pools? Ie where will the market be met between individuals gaining money versus gaining their voting rights as stakers. If I believed everything I read in the forum , it sounds like staking pools are already looking to buy our votes ? I wonder how many will help us input our votes and to what extent?


#3

I understand the need to create a cost to voting for treasury proposals - and the temporary loss of liquidity (by locking the funds) is not a bad idea.

However the opportunity cost of such an action is very asymmetric. Accepting that voting power should be somewhat proportional to stake “locked away” the opportunity cost (https://en.wikipedia.org/wiki/Opportunity_cost) for 1000 individuals with small stakes is much higher than for an individual with 1000 times such stake.

This point has been made to Bingsheng Zhang - the ideas are still being developed and there are plenty of passionate people or good intention thinking hard - and trying to be wise!


#4

One way to solve this is to have the pool operator provide an agreement that they will act as a proxy for each of its members for example - 1 ADA = 1 vote in which the pools are obligated to be the proxy. I’d be surprised if this is not included when Cardano releases information on ADA pools and staking. They have thought quite a lot about governance and that would be a huge hole.