How Does a Decentralized Autonomous Organization (DAO) Use Commit-Reveal for Voting?
A decentralized autonomous organization (DAO) uses a commit-reveal scheme for voting to ensure voter privacy and prevent vote-buying or coercion. In the commit phase, members submit a hash of their vote (e.g.
'yes' or 'no') and a secret key. This proves they voted without revealing their choice.
In the reveal phase, after the voting period ends, members reveal their secret key and vote. This prevents others from knowing how a member voted until it is too late to influence the outcome, ensuring a more honest and fair governance process.
Glossar
Decentralized Autonomous Organization
Governance ⎊ Decentralized Autonomous Organizations represent a novel framework for coordinating collective action, particularly relevant within cryptocurrency ecosystems and increasingly, financial derivatives markets.
Voter Privacy
Anonymity ⎊ Voter privacy within decentralized finance contexts centers on obscuring the link between transaction origins and identifying information, a critical consideration given the immutable nature of blockchain ledgers.
Voting
Governance ⎊ Voting within cryptocurrency, options trading, and financial derivatives represents a mechanism for stakeholders to exert influence over protocol parameters, listing decisions, or the direction of decentralized autonomous organizations (DAOs).
Decentralized Autonomous Organization (DAO)
Governance ⎊ Decentralized Autonomous Organizations represent a novel framework for organizational structure, leveraging blockchain technology to enact rules encoded as transparent computer programs.
Commit-Reveal
Mechanism ⎊ Commit-Reveal protocols, within decentralized finance, represent a staged disclosure of trading intentions, initially committing to a transaction and subsequently revealing the specifics.