When dxDAO launched I thought it was cool idea and participated in the initial distribution plan, acquiring a little over 300 Reputation. I voted on a few early proposals but quickly realized there wasn’t much point. For one, it took a fair amount of time to educate myself on the proposals in order to vote intelligently. It also cost me money to pay the gas for my votes. Since the top few REP holders can dominate any vote, it became clear that the dao didn’t actually value my participation. Sure, I earned a little REP for the effort, but as it has no market value and no other entitlement one can’t even cover one’s gas costs with it, not to mention the time investment.
Given the above, its more than a little disingenuous to state that REP holders are a “sovereign collective” and have a “right and implicit duty to govern and direct the collective.” Almost no one’s dao participation matters in any real sense, and this is reiterated by the fact that the dao provides no monetary value to holding REP and disallows a market therein, while ironically expecting its members to donate their labor and attention to its governance. The dao, therefore, is an oligarchy with a vast base of disenfranchised “owners” with no effective rights or privileges.
(By the way, it’s pretty lame that the top 30 holders have no name, description, or social verification in Alchemy. These addresses hold over 75% of the REP.)
No amount of my efforts will ever garner me enough REP to matter in the decision making process. And the structure of the institution insures that I and others like me will not incur any tangible benefit from being a minority ownership voice. The implicit idea that keeping REP valueless means that large REP holders are not motivated by monetary gain is rather naive.
If the dxDAO wants this governance experiment to become more than decentralization theatre, then I humbly propose that it consider some of the following changes:
At the very least, remove gas costs for voting. (eg. reimbursement of gas costs or some L2 solution.) This merely removes the biggest disincentive to participation, but does nothing to incentivize it.
A claim to some revenue for active participation. eg. share of revenue from DAO-owned DXD, burn REP to receive pro-rata share of the DAO’s DXD.
A permissionless way to acquire REP. eg. make it transferable, mint new REP by depositing DXD into the DAO. There has to be a credible way to challenge the dominance of the oligarchy.
(FWIW, I was motivated to write this after reading some comments on this thread.)