On the Representative System (Option 1)
Main concerns…
Preventing stake splitting: Anyone can create new wallets and spread their tokens around - how is the prevention of stake splitting actually enforceable in a decentralised system?
Kash Note: Good shout - open to ideas from the community!
Equal voting power issue: Why should a rep with 10,000 delegated JUP have the same vote as one with 1,000,000? This seems to go against the whole point of stake-weighted governance. If someone’s willing to risk more capital, shouldn’t their voice carry more weight?
KN: This was specifically changed after talking to some community members who felt worried that large holders would have even more of an outsized voice in a system where there were fewer votes. Stakeweight still matters in terms of Representatives and deciding who gets to be a Rep, so it’s not going against the whole point of SWG, but rather just a mitigation
Vote direction / info problem: If a delegator can change their rep vote-by-vote, don’t they need to know how their rep plans to vote beforehand? Without that knowledge, this flexibility is meaningless. And whose to say a rep won’t change their vote in order to improve their chances of attracting stake so that they can maintain their Community Leader status?
KN: Yup! The idea is that Representatives who want to stay Reps would signal in advance their voting intention, could even build this into the Delegation website. You’d also be able to change mid-vote, based on how the Rep has votes. As for changing their vote to attract stake - seems good to me actually! doesn’t defeat the purpose of anything, actually makes Representatives responsive to their delegators
On Opt-In Delegation (Option 2)
Privacy concern: Showing voting history publicly could be problematic. Votes should probably stay private between delegators and their reps to avoid social pressure and potential retaliation.
KN: interesting point - curious to see what others say here
A few other questions
Rep compensation: worth repeating what @meow brought up in a recent JUP Rally call: how are representatives getting paid for all this extra work? The proposal mentions ASR for delegators but nothing for the reps themselves.
KN: it’s not actually any extra work - for example in Option 2, they’d have to vote every time anyway for ASR. And if we don’t go with either option, then they also have to vote every time if they want ASR
Monitoring reps: If delegators have to constantly watch whether their rep is voting to protect their ASR, what’s the point of delegation? At that point they might as well just vote themselves - it’s probably less work than rep monitoring. A default voting mechanism could help here.
KN: ideally they’d be delegating to people they know/trust to actually participate in governance. e.g. delegate to Matto, since you know he’s always around. And monitoring is also actually a good thing to the degree it keeps people somewhat aware of what’s happening in governance, without needing to read every proposal/comment/attend ever event/etc
Default voting mechanism: What happens if a rep misses a vote due to illness or other legitimate reasons? Should there be an automatic “abstain” or default option to ensure delegators still get their ASR? Otherwise the DAO is creating potential financial disputes between delegators and their reps.
KN: having a “default” vote would defeat the purpose of ASR (since then everyone gets it by default for being staked), so don’t think that’ll work. and yes, would be up to the delegators to ensure that their Rep had voted
Final thoughts
While I love this discussion and the fact that we’re trying new things, our goal here should be solving voter fatigue without breaking what makes DAO governance actually work.
Rather than picking one option, maybe we should look at hybrid approaches like:
- Keeping stake-weighted voting among reps
- Adding privacy protections for delegation
- Proper rep compensation
KN: i actually love the idea of compensating representatives, but many others were against it. I thought doing an e.g. 5% commission on the delegated ASR would incentize more people to do it, and would create even more interesting dynamics"
Anyway, those are my early thoughts. Would love to hear what others have to say in the coming days.
Btw isn’t it great to share and discuss all our ideas before a proposal is drafted?
KN: yessir!
It takes a bit of weight off the discussion and enables a free flow of ideas. 