Daos they work now what Dennison Bertram Tally xyz - UNCLEAR TALK

hello he's Denver how are you today it's pretty great location this is a change from last year much much much bigger so today what we're going to be talking about is Dows my name is Denison Bertram I am CEO and co-founder of tally.xyz we are uh Dow tooling platform that allows you to build tools and Dows in communities in a really scalable way today I really want to talk about a lot of the things that we've learned over the past year of working with the preeminent Dows and the ecosystem because while things are working we can do better and we have some really great ideas on how we can do better so first of all if you're not familiar with the governor framework the governor framework is now created and run by open Zeppelin it was originally created by compound as a part of their efforts to decentralize their protocol and since then it has become a standard contract and a standard framework that is available in the open Zeppelin Library it started off with one Dao then another adopted it and today we can firmly say confidently say that Governor has been a success in decentralizing financial protocols layer twos and other projects looking to build really scalable dows a fantastic ecosystem has been created around Governor from the platforms that use it platforms that support it this is a very open ecosystem so we have a large number of people building here bringing a large number of Innovations to this ecosystem which is one of the reasons why it has been such a success it's an open framework that people are able to expand upon to give you an idea of what success looks like here the governor framework now has over five billion dollars in assets managed by the com the communities using the governor framework to manage them currently over 1.3 million addresses actually hold Governor Dow tokens but it is a little bit Wilder historically in total over 14 million ethereum addresses have had access to Dow governance at some point via the governor framework and there have been over 5 000 proposals made right this ecosystem has gone from zero to one to Millions really fast in a very robust way but we're not done I gave a talk a couple days ago about the successes of the governor framework how much we've managed to do how far we've come on it but this talk is a little bit more about what's ahead of us what sort of challenges still remain who's working on solutions to these challenges what might these Solutions look like it's pretty common when we talk about the governor framework to talk about token weighted voting right token voting sometimes these things seem like bad ideas it's true there's opportunities for plutocracy where wealthy individuals accumulate a large amount of voting power because it is a one token one vote system but that's not the only thing there that that doesn't really address what's happening under the hood of those 1 million plus token holders less than 10 percent of them are actually registered voters right so we have this incredible number a million people million addresses that can vote but they're not registered to vote only 10 percent are registered to vote right delegation one of the Innovations of the governor framework where basically users can have tokens and say look Dow governance is important but I'm a busy person I have Dow tokens from all the D5 protocols I don't have time to read proposal after proposal and participate in the governor framework you could delegate your voting power to someone else you can say you know what this person over here they're more responsible they're more knowledgeable I'm going to delegate my voting power to them this is important right this is important because some Dows are really complicated organizations that rely upon their voter base to do very complicated things adjusting risk parameters updating the fundamentals of the protocol in the case of l2s which are secured on L1 via the governor protocol it's actually managing the state and security of an entire another blockchain using this so delegation really unlocks an enormous potential for people to expand the ability to participate by actually deciding to say I have a representative in this ecosystem it's this person they'll vote for me but this isn't a silver bullet right delegation is a huge unlock but when it's done right you have situations where it can be difficult to get voters the same way it might get be difficult to get them to participate and vote on something it might be part difficult to get them to actually delegate to someone sometimes once they delegate it's difficult for them to hold their delegate accountable right it's difficult for them to remember oh hey once upon a time I got an airdrop I delegated that airdrop to this person and that person has done a bad job since then maybe they didn't even vote right on our platform tally.xyz you can look into the voting history of delegates some of whom are quite famous and sometimes they don't show up this is a graphic that we put together about ens this is an ens vote where there's a little bit of criticism saying oh delegates always vote Yes um and there's no decentralization because there's only a small number of large voters That Swing the vote we thought about this we looked into it and if you see here we kind of have this graphic on our site that's we're a little bit famous for for showing how people vote using this bubble chart but what we did was we broke down to say okay normally you would just see these big bubbles and we wanted to know what do these big bubbles actually represent because sometimes what happens is people think oh these large voters are deciding right token voting doesn't work because it's plutocracy because you have these large voters well when we look into it each of these small dots inside is another voter that has delegated their voting power to this person so when we look at this visualization of how people are participating in the vote this isn't 30 people deciding the outcome of this vote this is tens of thousands of people deciding the outcome of this vote right and that's something that's really important it's important to find a way to make sure these tens of thousands of people participate in the way that makes sense for them in this case in ens they delegate to these individuals who then vote on their behalf and when you look you can see what composition of the voting power looks like in this case fireeye's Dow has several large voters and then many small ones left Harris who's a very famous delegate across the ecosystem is almost entirely composed of small delegates that trust him as a participant in the ecosystem airdrops are another important tool for the initial decentralization of communities right this is the initial moment when a protocol or a system distributes their tokens whether this be all at once throwing money on everyone or some sort of liquidity mining incentives or some sort of structure and it's important for these to be done right because the airdrop is kind of this funny carrot and a stick kind of moment right this is when a protocol says hey we need to be decentralized we're going to give away this governance token to everyone but when they're done right they've got to do this thing where they say okay here's free money delegate to do it at the same time so when people do delegations as part of air drops they actually can take this moment and this is something that ens did to educate the participants of their ecosystem of their responsibility of being part of this system this is really important right that's the first time that you set the standards of how your community is going to interact how your community is going to participate and it's really key to make sure it sticks that you make sure people understand this organization as a constitution we have a goal we have an aligned objectives by participating in this this is what we expect of you when you are in the forums you treat the other delegates and participants with respect right these are important moments for the long-term success of organizations when it's done right so what add some some deep button presentation I did on uh Thursday I think it was we went into some of the actual teams we're building some of the really awesome things that are I'm going to talk about here but to solve some of these problems there's Innovation on delegations right I mentioned delegation is this like fundamental innovation of the governor framework but it's got some flaws to it right the flaws deal with humans getting bored or not participating or misaligned incentives right ideas here for how to fix this we're working on ecosystem elections right in the real world you go out you vote there's a lot of rigmarole around the fact that we're going to do an election people are going to participate in Dows every different organization has different time scale maybe someone's working on it maybe someone's not we need to have ecosystem wide opportunities for delegations right this is the creating of an ecosystem-wide election process a delegate drive to say hey reminder people of avirium who participate in these protocols and who guard the security of our state now is the time to come back and review is the person who you're delegating to doing a good job are the things they voting on the way that you would have expected them to vote on other things are smart delegations rules-based delegations that understand maybe the voting power decays over time to create more incentives and professional delegates this is something that we see happening already in the Mika a maker ecosystem where we actually pay delegates you might say what do you mean pay delegates well some of these systems are really complicated and you really need to understand how they work the people who are doing the high level delegate the high level work in Protocols are incredibly overworked maker actually pays their top delegates because it is a full-time job to govern a billion dollar liquidity protocol to govern an L2 to ensure that it's safe under all circumstances and by actually paying professionalizing some part of the delegation system you actually created an incentive structure for folks to hold people accountable for their work hey you're paid three hundred thousand dollars a year what did you do I could do that better that should be my job and then you see the market economics of that person being able to turn around the ecosystem and say I could do a better job because of a b c and d and next election if you don't think I have delegate to someone else ensuring Fair air drops early on the airdrop idea was hey did you use this protocol once before here's some money go vote with it right this idea has become professionalized by civil folks people who create an industry out of trying to game airdrops if you go through the ecosystem today you'll notice activities way up but it's not all organic activity you go into forums and you see people just saying love this project love this project love this project it's awesome it's awesome all gaming the system for an airdrop we need better better civil resistance recipient reputation there's a lot of people have been working for a long time how are they participating what's their reputation and making sure we actually align our participants I use this joke when I talk about airdrops quite frequently let's say I'm riding my bike I'm in a car accident I go to the hospital do I deserve to get Hospital governance tokens because I provided my body as liquidity to the organization no I'm not qualified to use a hospital run a hospital even though I've used it so there's an expectation of understanding who are the aligned participants flexible voting this is a new one it's being built by the scope lift team out of a grant from Unison uniswap and get coin um this is actually a system that expands the way we count votes on the smart contract level and it opens up an enormous number of opportunities we can let people vote with LP tokens right a lot of folks who hold governance tokens actually have them locked in other smart contracts and cannot vote with them this expands access to them exchange voting there's a lot of people that hold their votes on centralized exchanges the exchanges can't vote in their name and the voters can't vote themselves and that takes a lot of voting participation out of the system flexible voting allows us to build trustless means of folks that do use centralized exchanges to participate in their governance and smart contract voters this means allowing smart contracts to cast votes and this may seem okay interesting smart contracts casting votes but actually what it opens up is the ability to do L2 based governance where we vote on l2s where it's much cheaper and we can have a wider range of participants shielded voting types of privacy-based voting where the result is settled on chain zero knowledge proof based voting where we can actually do fully private fully off chain unlimited scalable voting and all we need to do is provide a simple small proof to be verified on chain at low cost of the outcome of a vote so I have literally 16 seconds left so I've timed this perfectly if you are interested in launching a dow maintaining your doubt keeping delegation fire alive rotating delegates any of these things please get in touch we are tally.xyz we are helping many teams out there and we would love to help you as well foreign