Voting vault: a new primitive for defi and Governance

Voting Vault： A new kind of DeFi And governance primitives

Voting Vault, A new governance primitive from the Council agreement . If users pledge their governance token as collateral quality to Compound or AAVE in , They can still vote and participate in governance . This can be applied wherever a token needs to be locked , for example AMM Or income vault .Voting Vault Allow users to participate in governance , At the same time, these assets can still be used for DeFi For any other purpose , So as to improve capital efficiency . However ,Voting Vault Extend to many additional use cases . essentially ,Voting Vault Defines a strategy that constitutes voting . They introduce a new way of governance , The aim is to reduce " The rich " rule 、 Address voter apathy and increase voter participation . New primitives make decentralization possible , It gives the right to vote to many people , And even if the user's token is locked on other platforms , Users can also vote .

Let's delve into a few Voting Vault Example

initial Voting Vault

• Vesting Vault - Allow locking / Authorized positions have voting rights in the governance system , This is achieved by defining multipliers for the use of granted tokens .

• Locking Vault - Pledge governance tokens in the platform to obtain corresponding voting shares .

• Non transferable Voting Vault- Tokens can only be obtained through this packaging vault , It holds account balances , And cannot be transferred to any address .

Here are the potential options that governance might consider . Governance participants may also envision / Ask other questions that are not listed here .

short-term Voting Vault

• Compound/Aave Vault —— Use tokens as collateral and / Or earn interest , While maintaining the right to vote . Voting power is defined as the function of loan supply and demand .
• LP Vault—— Obtain voting rights while providing liquidity .
• Ouroboros Vault—— Deposit such as Element Something like a primary token or a non governance agreement token , To get more votes than the current balance .
• L2-L1 Synthesis Vault —— L2 Publish balanced tree hashes and L1 Voting use L2 Merkel's balance proved .
• DAO Merger Vault—— Ability to vote for token holders of other agreements .

long-term Voting Vault

• Identity Verified Vault—— Verify that our digital identity is a unique person , To get the right to vote . This is related to “ One coin, one vote ” In sharp contrast .
• Github Contributor Vault—— Get voting rights from your contribution to the agreement .
• Community Contributor Vault—— By participating in the community or owning DAO Assigned roles get voting rights .

Achieve inclusive governance

Voting Vault By allowing voting rights to be provided to any contributor or value provider to the agreement , Inclusion is introduced . As shown above , identity Voting Vault You can link to GitHub The contribution of 、 Debate and forum participation . Those who may not hold a large number of governance tokens , But users who are likely to bring significant value can now have a greater say in governance . An agreement can even give L1 or L2 Developer voting rights , Because it was they who first made the agreement possible . Because the token is kept in L2 On (gas It's cheaper ), Generally, users who cannot participate in the governance can also use L2-L1 The synthesis library participates in governance . This distribution of power in the hands of more users can further achieve decentralization in the protocol .

Voting Vault

Voting Vault Defines strategies for counting votes and providing voting rights . To enter a new Voting Vault, It requires governance to approve defined policies . The agreement makes no assumptions about the Treasury , Just check their voting rights . In the current governance system , The right to vote is defined as one coin per vote , But there are some weighted exceptions . stay Voting Vault in , Voting power is a fluid structure , Can be allocated in many different ways . The protocol can run multiple counting strategies in parallel , They are designed to be governance escalation , Avoid migration problems . It is difficult to get someone to vote on a proposal , So imagine having them migrate tokens from one version of the governance system to the next .

Another benefit of the Council is , When using Voting Vault when , Governance members can still access the authorization . This means that governance members can do everything they like DeFi Activities , At the same time, entrust their votes to the people they trust , In order to DAO Make the best decision .

The opportunity cost of participating in governance

In most of today DAO in , Users face huge opportunity costs when participating in governance . They must lock their tokens in the voting contract , And give up the loan / An opportunity to borrow money or generate income . This creates a dynamic , In this dynamic , A large number of users choose not to participate in governance , Instead, they prefer to deposit their tokens into interest bearing positions or borrow against them . meanwhile , This enables large players to gain greater influence in the system . therefore , Due to lack of community participation , Many teams or small whale groups end up in DAO Run most processes in , This first goes against the purpose of decentralization . Essentially ,Voting Vault Is a remedy “ The rich ” A method of domination and low turnout . They allow more users to participate in or delegate governance , Even if their governance tokens are locked on other platforms .

The way forward

The Council governance agreement wants to see the development of its own governance ecosystem . Projects should be able to pick and choose what they want Voting Vault.

Source：https://medium.com/element-finance/voting-vaults-a-new-defi-and-governance-primitive-b4b2f6289d48

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