Discussion on Punishment Mechanism in DAO Governance

Community is a long-term process. It is one thing to create temporary attention, but it is another to cultivate meaningful groups of relationships and unite the entire community to contribute their time and energy over a period of time.

A large number of relatively clear work goals in the short term may make members feel the meaning of coercion and resist the community and leave (because people are different, the standards for this are also very different), which is also consistent with the DAO culture: let Contributors work on tasks they love to deviate from this.

Therefore, the choice of identity needs to be subdivided, which is very important. Since DAO lacks the hierarchical system of traditional entity organizations in design, only the roles are different in the community, and there is no distinction between upper and lower. In the context of the token network, the roles are roughly divided into two types, pure token holders and active contributors. By. Simple token holders may be inactive members of the community. However, due to the high liquidity and flexibility of cooperation in DAO, the enthusiasm of active contributors will be hit as a result. The question then arises, what to do or how to deal with less active or passive participants.

Most of the current complete DAO governance is based on Elinor Ostrom’s 8 principles of commons management. One of them is: tiered sanctions for resource occupiers who violate community rules. In past experience, no matter who made the rules, the methods of monitoring the operation and compliance of the rules are often considered to rely on an omniscient and omnipotent role outside the system rules to enforce them. However, research on resource governance in public ponds found that, in most cases, when personal interests and public interests conflict with resource allocation, social programs that people implement themselves (often complex) still work well. The operation and guarantee of the rules are not realized by external roles, but the participants balance the pros and cons by themselves. It is a contingency strategy.

Contingency strategy is when the strategic actor realizes that

  1. collective goals will be achieved
  2. When others also obey the rules, he himself will obey the rules. Everyone’s compliance with the rules depends on others’ compliance with the rules. Contingency strategies are the source of long-term stable cooperative outcomes, and everyone is a supervisor at this time.

If no violations are found, the supervisor defaults that others are also following the rules, so he will continue to follow the rules.

If a violation is found, but the behavior occurs by accident on a particular occasion, the finder may only impose an appropriate sanction on the violator, in which case a small penalty is enough to remind the violator of the importance of following the rules. In an effective public pond resource governance system, the initial sanctions are often surprisingly light, and the discoverer may be in a similar situation in the future, and he will hope that he will gain some understanding at that time.

If supervisors find that there are repeated violations that may pose a real threat to the contingency strategy, they will increase the intensity of sanctions to prevent new violations by these violators and prevent others from following these violators.

From trivial fines to expulsion of violators, the extent of sanctions for occupiers who violate the rules depends on the content and severity of their violations. Such graded penalties are far more effective than uniform consequences, which are more appropriate sanctions in the context of understanding the specific circumstances in which the violation occurred.

Punishment mechanism, the subject of punishment is the individual, and the individual is affected. What is the specific form of punishment? Do the punished must have tokens pledged in the agreement, so that their income will be damaged? From the perspective of DAO, if the punishment is the credibility, and the credibility is linked to the authority. In the DAO community, once a reputation is established, there will undoubtedly be more opportunities. Contribution and reputation are not equal, but complement each other. High contribution will bring good reputation, and good reputation will help to make greater contributions. A low contribution degree can still maintain a good reputation, but damage to the reputation is fatal. One might even dismiss previous contributions (or have to reassess) on this basis, and Coopahtroop’s troubles with early inappropriate rhetoric about race is certainly a prime example.

DAOrayaki | Discussion on Punishment Mechanism in DAO Governance

Based on the contingency strategy, in the process of punishment, self-judgment can be used to restore credibility, the decision of whether to punish is made by the community, and the punishment result option is chosen by the punished person, and the punishment result is selected by the community vote. This kind of self-consciousness can also better understand the attitude of the punished and restrain oneself better, which is also a kind of warning to other people in the community. From the perspective of the punished, the trust of the community can be regained on the basis of reform. From the perspective of the community, this has also formed a cultural atmosphere. The roles are different and everyone is equal, but everyone needs to be vigilant about whether their behavior is wrong or not. It is causing the tragedy of the commons. After the self-determination is over, the community conducts a reputation vote, and the voting result not only represents the satisfaction with the self-determination results, but also reflects the credibility of the member. At that time, credibility has always been difficult to quantify, but it is well reflected at this time.

Therefore, in DAO governance, the punishment mechanism revolves around personal reputation, which can well restrain the behavior of individuals.

Thanks to DAOctor@DAOrayaki, shawn@DAOrayaki and Tokenbecator.eth, they provided a lot of help and inspired a lot in the communication with her (him), thank you.

Hope this article helps you. Thanks for reading.


[1] How to assess new community building hires for token networks


[2] Revisiting the Open Community Governance: Eight Principles for Designing the Ostrom Commons Governance System


Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/discussion-on-punishment-mechanism-in-dao-governance/
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