Governance Mechanism Proposal - Tradeable Voting Rights

General
1

Hi all,

I’ve developed a governance mechanism that brings market forces to bear on group decision making. It addresses many of the issues identified by public choice theory (rational ignorance, preference intensity blindness) that have been plaguing DAOs since their inception.

Gist: The mechanism inherits from an ERC1155 contract. Proposals that gain sufficient support trigger an election, which distributes voting tokens (one for each governance token held). These can then be sold on any ERC1155-compatible marketplace, or sent to YES/NO addresses to vote.

Why This Works:

  • Market-driven expertise: People who understand a proposal can buy more influence. Those who don’t care can sell and get compensated.

  • Information discovery: Spotting important proposals early becomes profitable - creating incentives to actually pay attention to governance.

  • Minority compensation: Instead of just losing, minority voters can sell their tokens to the majority and capture economic value.

I’ve created a working implementation with full proposal lifecycle and marketplace integration.

Demo: https://marketdao.dev
Code: https://github.com/evronm/marketDAO

I’d love to know what the community thinks of this approach.

2

How is this different from other existing solutions such as Lobby Finance?

3

I’ve done quite a bit of research and couldn’t find anything similar. I searched for “Lobby Finance” to answer your question, and couldn’t find anything. What is it? Can you provide a link, please?

4

Hey @evronm, check out lobbyfi.xyz, docs.lobbyfi.xyz and x.com/lobbyfinance if you like.

5

Thanks for the links! They are in fact quite similar conceptually. From my cursory examination of LobbyFi, I’d say MarketDAO might be a distillation of LobbyFi to the simplest primitive form. Certainly the same insights are at work.

But one of the biggest strengths of MarketDAO is its simplicity. Anyone familiar with Solidity and 1155 can probably understand the entire codebase in about half an hour. LobbyFi seems more involved.

I hope this answers the original question, and thanks again for the goto.

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