

One of the challenges with current DAOs is member voting.
Just as voters in political elections are susceptible to apathy and lack of engagement so members of DAOs suffer the same challenges.
Voter participation is a problem.
One solution is the delegated voter in which the members give their proxy to another to vote on their behalf.
Delegated voters can solve the time problem in that not every member has the time to follow each issue.
The political system uses delegated voters in which the citizens elect someone to vote on their behalf for each issue.
There are challenges with delegated voters.
Once someone becomes a delegated voter it’s difficult to remove them. Potential solutions are term limits.
Each delegate can serve only for a limited time period.
Another is limiting the number of votes a delegate can control.
This reduces the chance of concentration of power in too few hands.
Finally, there’s bribery in which members give their tokens to delegates in return for support for the member’s initiatives.
Consider these issues in setting up delegated voters.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.