Snapshot unveils the 'shielded voting' feature this week.
After a closed beta phase, Snapshot is introducing its new 'shielded voting' feature this week. This tool, developed in collaboration with the Shutter Network, seeks to level the playing field in terms of decision-making power within decentralized finance frameworks. DAO governance Ironically, this approach may reduce some of the transparency we typically associate with DeFi.
Shielded voting allows participants to hide the live results of proposals until after decisions are made, giving those with less influence a sense of control. Moreover, it effectively prevents front-running, which occurs when entities with significant stakes monitor voting progress closely and make last-minute moves to influence the outcomes.
Since its inception in August 2020 to cater to the Balancer community, Snapshot's complimentary platform has evolved into a benchmark reference, enabling over 2,000 DAOs to visualize incoming voting results. As one of the first entrants into the DeFi ecosystem, Snapshot is now playing a pivotal role in molding its future. pivotal Web3 moment .
Whether on purpose or by coincidence, Snapshot's latest announcement seems to address a report released on June 27, which stirred up questions among Chainalysis experts regarding the true decentralization of DeFi. Chainalysis that parses data from 197 DAOs spanning Uniswap to Nouns The report states, \"Our analysis of the governance token distribution among ten significant DAOs reveals that under 1% of holders wield 90% of the total voting power across these organizations.\"
Not all power dynamics are created equal in this context. Chainalysis points out that participating in voting is straightforward—any token holder can do it. However, the questions remain: Who can initiate a proposal? Who has the authority to pass it?
The investigation into ten DAOs' proposal criteria yielded two key revelations. Firstly, merely 0.01% to 0.1% of holders possess enough tokens to even propose an idea.
This imbalance isn't purely a conspiracy. In some respects, this reality serves a practical need. Allowing a broad range of individuals to propose ideas could lead to an overload of spam, reminiscent of those exaggerated community assembly situations seen in shows like Parks and Recreation. At the same time, making these communities accessible is fundamental to counteract conventional power structures.
While the new shielded voting may not rectify the token-related power imbalances within any specific DAO, it will at least encourage those with limited influence to participate in the voting process. Snapshot's ecosystem lead Nathan van der Heyden commented that, \"Providing real-time vote updates can lead to voter disengagement, diminished participation, and information disparities.\" DAO The innovative system developed in partnership with Shutter Network employs threshold cryptography—this technique permits a collective of key holders to set up a secure lock, which may only be accessed if a certain number of members collaborate, as explained by Decrypt.
Once activated via the DAO’s administration dashboard, this shielded voting feature will secure each ballot case through encryption until the process wraps up. The finale not only reveals the voting outcomes but also holds individuals accountable for their choices. Van der Heyden expressed a hint of nostalgia for the thrill that typically accompanies last-minute voting actions. Decrypt .
Although DAOs can start utilizing this new feature this week, Snapshot warns users to watch out for potential bugs since the beta testing is still fresh in their memories.
This caution truly reflects the current state of affairs within the ecosystem, which is still undergoing its own form of beta testing. Shielded voting serves as an extensive trial run, aimed at addressing community concerns. Keep an eye out to see if it affects the broader issues at play, which often transcend the Web3 realm and echo the societal systems it is inadvertently mirroring.
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