Shawn Grubb: Minnows v. whales: Quadratic Governance to the rescue
DAO Camp 2023 Winter
Website: https://daocamp.org
Youtube: https://www.youtube.com/channel/UCeHtPZ_ZLZ-nHFMUCXY81RQ
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8. •Traditional Business
•Objective: build shareholder wealth
•Intellectual property is protected
•Decisions are top-down
•Employees are retained
•Challenge to engage employees
•Regionally managed workforce
•Clear reporting lines
•Responsibilities and jobs are assigned
•Initiative is rewarded
•DAOs
•Objective: deliver stakeholder results
•Intellectual property is shared
•Community makes decisions
•Contributors are voluntary
•Challenge to direct passion
•Globally sourced contributors
•Choose whom you work with
•Choose what you want to work on
•Initiative is the cost of entry
9. •Traditional Business
•Objective: build shareholder wealth
•Intellectual property is protected
•Decisions are top-down
•Employees are retained
•Challenge to engage employees
•Regionally managed workforce
•Clear reporting lines
•Responsibilities and jobs are assigned
•Initiative is rewarded
•DAOs
•Objective: deliver stakeholder value
•Intellectual property is shared
•Community decides direction
•Contributors are voluntary
•Challenge to direct passion
•Globally sourced contributors
•Choose whom you work with
•Choose what you want to work on
•Initiative is the cost of entry
16. Build a
widget
factory
Build a
widget
Team effort
Complexity Challenge Matrix
Complex:
(undefined, ambiguous
and no solution)
Complicated:
(many moving parts, but
can be defined and
understood)
Simple:
(clearly defined,
understood, and solutions
are present)
Multi-
organizational
effort
Multi-
functional
effort
Solve
climate
change
17. Build a
widget
factory
Build a
widget
Team effort
Complexity Challenge Matrix
Complex:
(undefined, ambiguous
and no solution)
Complicated:
(many moving parts, but
can be defined and
understood)
Simple:
(clearly defined,
understood, and solutions
are present)
Multi-
organizational
effort
Multi-
functional
effort
Solve
climate
change
18. Build a
widget
factory
Build a
widget
Team effort
Complexity Challenge Matrix
Complex:
(undefined, ambiguous
and no solution)
Complicated:
(many moving parts, but
can be defined and
understood)
Simple:
(clearly defined,
understood, and solutions
are present)
Multi-
organizational
effort
Multi-
functional
effort
Solve
climate
change
26. Your typical Jesuit business school:
The point of business is to “deliver
better than average shareholder
returns”.
MBA Thinking:
Aka: “maximize investor returns”
Golden Rule: he with the most gold - rules
27. Your typical web3 DAO:
The point of the DAO is to “deliver
better than average stakeholder
returns”.
Your typical Jesuit business school:
The point of business is to “deliver
better than average shareholder
returns”.
MBA Thinking: DAO Thinking:
Aka: “maximize investor returns” Aka: “maximize stakeholder returns”
Golden Rule: he with the most gold - rules
28. Your typical web3 DAO:
The point of the DAO is to “deliver
better than average stakeholder
returns”.
Your typical Jesuit business school:
The point of business is to “deliver
better than average shareholder
returns”.
MBA Thinking: DAO Thinking:
Aka: “maximize investor returns” Aka: “maximize stakeholder returns”
investor
Golden Rule: he with the most gold - rules
29. Your typical web3 DAO:
The point of the DAO is to “deliver
better than average stakeholder
returns”.
Your typical Jesuit business school:
The point of business is to “deliver
better than average shareholder
returns”.
MBA Thinking: DAO Thinking:
Aka: “maximize investor returns” Aka: “maximize stakeholder returns”
investor customers
Golden Rule: he with the most gold - rules
30. Your typical web3 DAO:
The point of the DAO is to “deliver
better than average stakeholder
returns”.
Your typical Jesuit business school:
The point of business is to “deliver
better than average shareholder
returns”.
MBA Thinking: DAO Thinking:
Aka: “maximize investor returns” Aka: “maximize stakeholder returns”
investor
contributor
customers
Golden Rule: he with the most gold - rules
31. Your typical web3 DAO:
The point of the DAO is to “deliver
better than average stakeholder
returns”.
Your typical Jesuit business school:
The point of business is to “deliver
better than average shareholder
returns”.
MBA Thinking: DAO Thinking:
Aka: “maximize investor returns” Aka: “maximize stakeholder returns”
investor
supplier
contributor
customers
Golden Rule: he with the most gold - rules
32. Your typical web3 DAO:
The point of the DAO is to “deliver
better than average stakeholder
returns”.
Your typical Jesuit business school:
The point of business is to “deliver
better than average shareholder
returns”.
MBA Thinking: DAO Thinking:
Aka: “maximize investor returns” Aka: “maximize stakeholder returns”
investor
community
supplier
contributor
customers
Golden Rule: he with the most gold - rules
33. Your typical web3 DAO:
The point of the DAO is to “deliver
better than average stakeholder
returns”.
Your typical Jesuit business school:
The point of business is to “deliver
better than average shareholder
returns”.
MBA Thinking: DAO Thinking:
Aka: “maximize investor returns” Aka: “maximize stakeholder returns”
investor
environment
community
supplier
contributor
customers
Golden Rule: he with the most gold - rules
34. Your typical web3 DAO:
The point of the DAO is to “deliver
better than average stakeholder
returns”.
Your typical Jesuit business school:
The point of business is to “deliver
better than average shareholder
returns”.
MBA Thinking: DAO Thinking:
Aka: “maximize investor returns” Aka: “maximize stakeholder returns”
investor
environment
community
supplier
contributor
customers
Golden Rule: he with the most gold - rules
40. Examples: Local elections, Club
president, school board members,
Examples: shareholder votes,
preferred shares, Defi, many DAOs
1 Person 1 Vote Weighted Voting
Here here!
41. Examples: Local elections, Club
president, school board members,
Examples: shareholder votes,
preferred shares, Defi, many DAOs
1 Person 1 Vote Weighted Voting
yaaaay!
42. Examples: Local elections, Club
president, school board members,
Examples: shareholder votes,
preferred shares, Defi, many DAOs
1 Person 1 Vote Weighted Voting
WTF?
57. Minnows v. Whales
Proposal: In Season 1 - Whales will eat the minnows
2M Tokens
@ $2
you
1000 Tokens
@ $2
#@%$#!!
58. Quadratic
Voting:
It's not all
rainbows and
bunny rabbits
● Transparency and Information symmetry are
required - When there is a minority with
superior information opposed to the majority, it
can expend resources to take the election.
● Proof of personhood is needed to avoid one
person splitting themselves into multiple
instances (sybil attack)
● Could be more sensitive to manipulation in
smaller populations
59. Quadratic voting is an
attempt to hold tension
between minnows and
whales
—-----------------
Whales are still whales,
But minnows have
hope
61. Thank you!
Shawn Grubb
About speaker:
Gitcoin DAO Governance
Presentation topic:
Minnows v. whales: Quadratic Governance to the rescue
More about presentation:
An illustration of why token weighted voting is dangerous for
the DAO and how quadratic voting is a viable mechanism to
level the playing field. This presentation will give the
participant a clear understanding of quadratic voting, how it
can be applied to single choice voting, the risks and benefits
of using the method, and what it can do for the DAO and
voter engagement.
https://twitter.com/gitcoin/status/1615322825086357504?s=20&t=WkeN1kSqDmHJUxXv0ONi3w
62. Links:
In order of appearance
Shawn16400 on twitter
Excited to join @camp_dao today to discuss Quadratic Voting and the DAO battle between
Minnows and Whales. Here is the presentation and docs shared:
https://docs.google.com/presentation/d/1xwVB-4cLC90XoYllykal882nyH5Zz7Ji0effw2GebHQ/edi
t?usp=sharing
https://miro.com/app/board/uXjVP2DZJt0=/
https://miro.com/app/board/uXjVPZQaKMk=/
https://www.economist.com/interactive/2021/12/18/quadratic-voting
https://twitter.com/gitcoin/status/1615322825086357504?s=20&t=WkeN1kSqDmHJUxXv0ONi3w