Discover more from The Tally Newsletter
the case for token voting
the Tally newsletter, issue 119
welcome back to the Tally newsletter, your weekly source for DAO governance insights. i'm coolhorsegirl and i’m so happy to be here. 🟣
this week, we’re breaking down the case for token voting—the reasons it’s sustained some of the biggest DAOs in the space through the bull and bear markets. 5 reasons why it’s not going anywhere, all below.
proposals from Aave and Nouns this week! noggles for the wrist, anyone? let’s get into it 👇
🤿 deep dive: the case for token voting
token voting is a quintessential mechanism for community-driven decision-making. it enables a transparent, secure, and inclusive process where holders have a voice in governance based on their stake, which in turn fosters a deeper sense of community, one of the most important factors in DAO success. here are 5 reasons why token voting works:
Ease of Use: First, it’s simple. Token voting epitomizes transparency and onchain verifiability, making it a straightforward and comprehensible method for community engagement. Since voting happens onchain, every vote is transparently recorded and easily auditable by anyone interested.
Robust Development Ecosystem: Token voting is a tried-and-true governance method for numerous prestigious projects. Compound, Uniswap, Arbitrum, Optimism, Aave, ENS, Maker, and Lido use token voting systems. The widespread adoption of the Governor standard further underscores the community’s trust and support. Notable contributors to this standard include Scopelift, known for its blockchain consultancy services, and Hedgey, which has introduced flexible voting mechanisms to cater to different governance needs.
Incentive Alignment: Token voting can be tailored to align the incentives of all stakeholders involved. Want to make sure your governance is not economically driven? Use non-transferrable tokens, like SafeDAO does. Keen to make sure voting power is allocated to contibutors that have a vested interest in the long-term success of the DAO? Hedgey Finance offers vesting contracts that allow contributors to vote with tokens in these contracts, meaning the tokens cannot be sold yet.
Scalability: The interoperability with established token standards like ERC-20 or ERC-721, makes token voting a scalable solution. Token voting can be seamlessly integrated into existing blockchain infrastructures, ensuring a broad spectrum of use cases and the potential to adapt to growing community needs.
Effective Go-to-Market Strategy: GTM is important, especially during the bear. Token voting can significantly amplify the visibility and community engagement around projects. The participatory nature of token voting cultivates a strong community ethos, one of the biggest determinants of DAO success.
⌛️ onchain proposals
summary: in order to maintain consistency between Aave v3 and other legacy instances (v2, v2 AMM, v1), this proposal will configure the deprecated fallback oracle address to address(0) on them.
voting ends: october 27th
Summary: yet another tangible representation of the Nouns community: Noggles for the wrist (yes, watches). 150k USDC to roll out 888 of ‘em.
Voting ends: october 27th
summary: 312 ETH to the "Nouns House DAO," a rebranding of the current Enabler DAO.
voting ends: october 28th
summary: nounify melbourne’s annual christmas party for underprivileged children with noggles, photograph, temporary tattoos, and more—all for just over 47k USDC.
voting ends: october 30th
📝 what we’re reading & listening to
🎧 Unpacking Arbitrum STIPs Winners and Uniswap KYC Uproar on 0xResearch
KYC—one of crypto’s most controversial topics. and it has implications on two big topics: the STIP, which Arbitrum is requiring KYC for before deploying funds and the Uniswap v4’s optional KYC compliance hooks.
🐦 Uniswap’s fee switch (and following debate) by hayden adams
at some point, companies have to make money…right? there’s an interesting debate under hayden’s post defending the Uniswap fee switch: some people just don’t want to pay, and some have more nuanced opinions.
🐦 DAOs should have at least a veto council by toly
with councils all the talk these days, the question of centralization looms heavy. all the while, attacks have happened and will continue happening—maybe councils are our saving grace.
💫 DAO talk: monetize or die || DT weekly ep. 60
🤭 meme of the week
~ coolhorsegirl 🐴
p.s.- more dog-sitting, this time in edinburgh’s nicest neighborhood!