Clear DefinitionsDelegated Voting
2 min read
Pronunciation
[del-i-gey-tid voh-ting]
Analogy
Think of delegated voting like how shareholders in a large company can choose to attend the annual meeting and vote themselves, or they can authorize someone else (a proxy) to vote according to their wishes or the delegate's own judgment. In a DAO, you can lend your voting 'voice' (tokens) to a trusted community member if you don't have time to research every proposal yourself.
Definition
Delegated voting, also known as liquid democracy or proxy voting, is a governance mechanism where token holders or members of an organization can entrust their voting power to a delegate (another participant or representative) to vote on their behalf. Delegates typically have more expertise or time to dedicate to analyzing proposals and participating in governance.
Key Points Intro
Delegated voting aims to improve participation and informed decision-making in decentralized governance by allowing users to entrust their voting power to chosen representatives.
Key Points
Transfer of Voting Power: Token holders can assign their votes to a delegate.
Expertise-Based Decisions: Allows those with more knowledge or time to make informed votes on behalf of others.
Increased Participation (Indirectly): Can increase overall voting engagement by lowering the barrier for individual token holders.
Revocable Delegation: Users can usually reclaim their voting power or change their delegate at any time.
Example
In a DAO like Uniswap or Compound, UNI or COMP token holders can delegate their voting rights to other community members, known "delegates," who actively participate in governance discussions, analyze proposals, and vote on protocol upgrades or parameter changes. The original token holder retains ownership of their tokens but their voting influence is exercised by their chosen delegate.
Technical Deep Dive
Delegated voting is often implemented via smart contracts. Token holders call a function in the governance contract to specify the address of their chosen delegate. When a vote occurs, the governance contract checks if a voter has delegated their power; if so, the delegate's vote is weighted by the sum of their own voting power plus all delegated power. Some systems allow transitive delegation (a delegate can delegate the power they've received). The mechanism needs to handle changes in delegation, new proposals, and vote counting accurately.
Security Warning
Over-concentration of delegated voting power in a few delegates can lead to centralization of governance and potential capture. Delegates must be chosen carefully based on their expertise, alignment, and trustworthiness. Malicious delegates could vote against the interests of those who delegated to them.
Caveat
Voter apathy can still be an issue, as can finding and vetting suitable delegates. Clear platforms for delegate manifestos and track records are important. The system needs to be transparent to allow delegators to monitor their delegate's voting behavior.
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