2. Quadratic Voting: A New Way to Govern Blockchains for Enterprises

www.forbes.com

As blockchains seep into enterprises, the need for optimising how decision making works with them drastically increases. A blockchain with hundreds of organisations on it would need a mechanism for stakeholders to come to a decision effectively. Quadratic voting is now coming into the discussion as an enabler for this. According to Forbes, the system provides a better way to make collective decisions that avoid the tyranny of the majority. It does so by tying economic value to the votes cast by individuals. Where traditional elections would provide each with one vote, quadratic voting makes it possible for a person to purchase additional votes to express how strongly they feel about a matter. However, each extra vote would cost more than the previous one. Each election cycle would collect tokens as a payment mechanism for these votes, and then redistribute the tokens across voters equally to ensure the system isn’t being gamed. The earliest variant of this “experiment” in on-chain governance is live on Eximchain. Through tying financial value with votes, the system may be capitalistic, but could drastically deter bad actors from attacking the network. Read more on the matter from Forbes coverage here.

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