Hi DeFi friends,
one thing that I always disliked about MakerDAO and other DEFI protocols is the lack of incentives for (non-whale) users to engage in governance, contribute to discussions and engage in the community.
I therefore want to share an idea with you: what if we introduced yield governance. Processes that distribute rewards to those who vote (and, hopefully, inform themselves on the vote beforehand, thus contributing to the community).
I haven’t fully thought this through, but an idea could be a mechanism that distributes a fixed token amount to those who vote (maybe, but not necessarily proportional to the weight of a vote). If it were proportional, the token distribution wouldn’t be affected if all token holders voted (I’m saying “token” on purpose, as we decided the YFI supply to be fixed, so this token likely wouldn’t be YFI).
Such processes would be similar to yield farming. Only difference: you don’t generate yield for providing liquidity, but for taking a stance and helping to make decisions that have the whole community behind them. We would actually, incidentally, solve the problem of low voter turnout that most democracies suffer from, but well, we’re used to doing stuff that can improve the real world
I could work out a more detailed proposal, but please contribute if you like this idea. Or let me know why it’s flawed and should be burried in the depths of this forum.