How Does ‘Quadratic Voting’ Aim to Improve DAO Governance?
Quadratic voting aims to improve governance by allowing users to purchase additional votes at an exponentially increasing cost. This system reduces the power of large token holders (whales) by making it prohibitively expensive to buy overwhelming voting power.
It gives smaller token holders a greater proportional influence on decisions, promoting broader participation.
Glossar
Large Token Holders
Influence ⎊ The concentration of token holdings within a limited number of entities, often termed "Large Token Holders," exerts a disproportionate influence on market dynamics within cryptocurrency ecosystems, options trading platforms, and related financial derivatives.
Proportional Influence
Concept ⎊ Proportional Influence is the governance concept where a participant's voting power is directly linear to the quantity of governance tokens they hold, commonly known as the one-token-one-vote model.
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).