Ethereum co-founder Vitalik Buterin says the token-based voting system of DeFi platforms must move forward.blog post on decentralized governance.
Referring to the importance of DevGov in the industry, Buterin also mentioned the flaws of token-based voting. Among the drawbacks are security risks and the conflict of interests. Presently, the more tokens the community member owns, the stronger their voice is. Thus, a small group of whales has more chances to pass decisions than wider groups of small holders.
Buterin sees the way of getting advantages of DeGov while reducing the risks is moving beyond coin voting as it exists now.He offers 3 solutions: limited governance, non-coin-driven governance, and making participants collectively accountable for their voting.
According to Vtalik Buterin, DeFi governance needs to be based on proof-of-humanity and proof-of-participation. This way, networks can assign one vote per human and attest to the fact that some account corresponds to a person, who has contributed to the ecosystem in some way.