what is credible neutrality and why does it matter?

the Tally newsletter, issue 128

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 peeling back the layers of this concept of credible neutrality and its vital role in web3 organizations. in credibly neutral orgs, fairness isn't just an ideal, but a built-in feature of the protocols we trust and build upon.

we’ve also got proposals from Arbitrum, Uniswap, and Diva Staking. let’s get into it 👇

🤿 deep dive

today, we’re talking "credible neutrality" and why it's a big deal for decentralized organizations. credible neutrality is all about being fair and unbiased, aligned perfectly with web3 ethos. in a system that's credibly neutral, decisions aren't swayed by personal interests or partnerships, and it is key to crafting a protocol that earns widespread trust, encouraging people to build upon it with confidence.

why does this matter? well, in the decentralized space, trust is everything. when systems are credibly neutral, they earn trust. people feel more confident participating because they know they're in a fair environment that won’t rug them not because it CAN’T rug them.

take this example: Zynga and Facebook. back in the day, zynga's games (farmville, especially) were huge on facebook. but when facebook changed its algorithm, zynga's traffic and revenue took a hit. it had to eat the risk because facebook isn't credibly neutral. knowing that a platform has the unilateral power to make changes that can significantly harm builders, it begs the question: why risk building on such an unstable foundation in the first place?

decentralized organizations are credibly neutral. they run on rules that everyone agrees on so that no one has unfair advantages or disadvantages dictated by a singular, self-interested entity. this foundational principle is what sets decentralized organizations apart, fostering an environment where trust and fairness are paramount. and that’s what gives others the confidence to build on top of them. building on credibly neutral (read: decentralized) organizations, you avoid being the next Zynga.

⌛️ onchain proposals

💙 Arbitrum

Proposal [Non-Constitutional]: Establish the ArbitrumDAO Procurement Committee

summary: 200k ARB to fund the Arbitrum DAO Procurement Committee (ADPC) kickoff, a group that will administer and facilitate various procurement frameworks within the Arbitrum Ecosystem, like defining how vendors are chosen and how contracts are awarded.

voting ends: february 4th

🟦 Diva Staking

[DIP-07]: Launch Early Staker Program Powered by Sommelier Vaults

summary: token distribution for early staker participants powered by Sommelier Vaults. aims to attract new users like the Rocket Pool community.

voting ends: january 25th

🦄 Uniswap

Lower Onchain Proposal Threshold

Summary: lower the current proposal threshold from 2.5M UNI to 1M UNI to broaden the delegate base capable of submitting onchain proposals, increasing delegate engagement.

Voting ends: january 27th

Deploy Uniswap V3 on Rootstock

summary: integrate Uniswap V3 on Rootstock (RSK), the first Bitcoin sidechain.

voting ends: january 27th

💫 DAO talk

🤭 meme of the week

it certainly feels like airdrop season these days. so of course we’re interested in sybil resistance. this article is definitely worth a read if you are too.

~ coolhorsegirl 🐴

p.s.- i’m at Oasis Onchain this week talking consumer crypto and the importance of brand decentralization. only another month until ETH Denver!