Governance Innovation: Analysis on Voter Behavior in Blockchain Governance | Devcon SEA

[Music] the [Applause] [Music] stage okay hello everyone um thank you so much for taking the time to join in um in this specific talk we're going to cover about governance and it will assume that you have a basic understanding of governance already another thing that this talk is going to do is drop a lot of QR codes because there's quite a few Innovations I want to cover so you can go apply it in your worlds and the QR codes will help you dive deep into specific topics that you want to dive deep into um let's start with Innovation number one and this is so often like overlooked let's face it right be it grants be it governance be it decision- making the voter's perception is at the end of the day your reality and the user experience in governance is an area of innovation that's not very much focused on um this is where we have an interesting product we just launched which um kind of shows you how you can delegate in one of the simplest user experiences possible uh you can select a the percentage that you want to delegate you exactly know what's your working power going to look like and then you delegate and that's simple and this is one area where we're trying to make user experience as less fragmented as possible um and if you would like to read more about the thinking the transparency the EOS the onchain activities that went into designing a governance Hub I highly recommend um scanning the QR code and jumping into it um now let's talk about not just the user experience let's go a little bit deeper right uh we did a research on how exactly voter Behavior works out we took two vot escro systems one we took pad do the other we to curve both of them require you to lock in your tokens and in return you get a certain voting power that voting power is Decay over a period of time but there's a there's one fundamental difference curve has a Financial incentive mechanism to it every Thursday you use your we curve tokens and um you get apy uh based on how the treasury allocates funds PKA do not necessarily has Financial incentives attached to it now you will see some very interesting insights so in curve 65% of curve is logged as V curve and out of the 65% that's logged an average of 38% is used for voting what do you think that number would look like for PKA do one that doesn't have Financial incentives well 54% is locked in multiple PKA do lockers and it's a you know a shockingly low 0.11% that's used for voting and you can see how Financial incentives play out a huge role in in possibly this disparity let's go let's go a bit deeper into another data point in curve the maximum lockup period is 4 years 6 7% of them actually do lock up for that long on an average what do you think it's for PKA do a similar V escro system it's again a shocking 4% locking up for a maximum duration of 224 days what is the other sign you see is that this this Behavior perhaps the underlying assumption is the financial incentives and how the whole incentive governance mechanism is playing out together we also went deeper we said who are these voters that are locking in longer are these whales are these large token holders we found a very interesting Insight both in curve and PKA do where 93% of whales and 98% of sharks tend to lock up for 14 days or less they tend to enjoy a sense of fluidity they tend to enjoy a sense of like flexibility with their lock up tokens we saw shrimps on the other hand locking up much longer um and when you design your governance system this is going to play a key role who are your token holders what's their demographic F how are you going to design your lockups and who's likely going to lock up for longer it's going to play a pretty huge role in the way you design that um for more on the governance research paper it's full of insights you have that QR code feel free to scan it um this is one of my favorites good governance is obvious but great governance and is transparent so many like over the last three years of being in governance I've had multip multiple people tell me I don't understand what to vote and who's keeping track of what to vote well we've introduced something called as transparency reports where every multi-c that's apparently taking decision is supposed to put out their rational behind it and so you can read a transparency report it's designed for even non-technical folks to really understand what's happening and exit the system if you choose that that upgrade is not safe for you or one that you don't like almost every governance team I work in this is a mandatory introduction and we made it very easy for folks to generate a transparency report my time's up but you can read more about transparency reports as well um what I'm going to do is I'm just going to jump through the final one which is the conditional voting power DK so the concept's really simple your voting power DK is with time but based on your participation and there's an interesting research on that as well but yes thank you so much everyone for taking the time and I hope this helps okay all right uh so okay so uh okay uh do we have any questions for Tanisha we can do maybe uh a round of passing the mic if anyone has questions yeah we do have one over there we do have one question at the back yeah hello do you mention the difference between paulot and kurve and how kurve has like higher votes just because of the Rewards or like uh incentives what sort of incentives are at play in there or what incentives you think might make sense for more STS that's a great question it depends on what the Dow focuses on there isn't like a one-size fit and like fit all answer so if if it's like curve or any Dow that's focusing on liquidity having apy for staking that's combined with governance where you you have like an underlying staking mechanism with W escrow and giving apis for that cryptoeconomic guarantees makes a lot of sense but for Dows that's not focusing on staking and focusing on engagement having very interesting ways of Distributing funds based on the level of Engagement like for a gaming Dow makes a lot more sense than just vote as Crow or taking so it's it's really what the Dow is seeking at the end of the day all right thank you and actually Tanisha here's a Live question what do you use to gather this data um we it's mostly on chain in the sense that a lot of these data points are already there so when your curve and PKA dot already have it on chain so you take all the wallet addresses we used Arkham data to also Identify some of these wallets and who they belong to to to measure the level of centralization but um I hope that answered your question hi um my question is more maybe on privacy and still managing engagement do you see valuable like uh using TK for enhancing privacy in um managing the proposal uh and still giving the confidence of user that will not be blackf fired maybe for an exposure yeah that's a great question so maybe not in proposal creation I think privacy is in my opinion best suited to delegations so I was talking about this to somebody yesterday let's say that I delegate to you and I want to UND delegate right but