At Extreme Investor Network, we are always on the lookout for innovative trends and technologies that could impact the investment landscape. One such area gaining attention as the U.S. elections approach is the potential for blockchain technology to revolutionize democratic processes.
As the United States gears up for elections on November 5, the conversation around blockchain technology’s role in democratic processes has intensified. According to a16z crypto, a resurgence in citizens’ assemblies and the exploration of ‘liquid’ democracy are gaining traction, alongside advancements in onchain voting mechanisms.
Liquid democracy, an idea popularized by 19th-century thinker Lewis Carroll, allows individuals to vote directly on issues or delegate their voting power to representatives. This concept, once impractical, is now being implemented by crypto projects, providing valuable data on its effectiveness. Research by Andrew Hall, a Stanford political scientist, and Sho Miyazaki, analyzed onchain data from 18 Ethereum DAOs, revealing key insights:
– 17% of voting power is delegated.
– Smaller token holders are more likely to delegate their votes.
– Active voters tend to attract more delegations.
– Online tools that assist voters in finding and evaluating delegates can boost participation by 25%.
To enhance participation in crypto communities, Hall suggests creating delegation hubs, providing clear information to voters, and incentivizing more frequent voting and delegation.
Another exciting governance method undergoing a modern revival is sortition, or ‘government by lottery.’ This ancient Athenian practice delegates decision-making to randomly selected citizens and is now being adopted by companies like Meta and OpenAI to influence policy decisions. Political scientists Bailey Flanigan and Andrew Hall discuss this trend in the latest episode of the web3 with a16z podcast.
As crypto becomes a significant political issue, bipartisan legislation is expected to feature prominently in the next government’s agenda. The integration of blockchain in governance not only promises greater transparency but also aligns with the broader trend of decentralization in technology.
At Extreme Investor Network, we are committed to exploring cutting-edge topics like blockchain technology’s impact on democratic processes. Stay tuned for more insights and analysis on the intersection of crypto and politics.