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The Economics of Blockchain Governance: Evaluate Liquid Democracy on the Internet Computer
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Decentralized Autonomous Organizations (DAOs), utilizing blockchain technology to enable collective governance, are a promising innovation. This research addresses the ongoing query in blockchain governance: How can DAOs optimize human cooperation? Focusing on the Network Nervous System (NNS), a comprehensive on-chain governance framework underpinned by the Internet Computer Protocol (ICP) and liquid democracy principles, we employ theoretical abstraction and simulations to evaluate its potential impact on cooperation and economic growth within DAOs. Our findings emphasize the significance of the NNS's staking mechanism, particularly the reward multiplier, in aligning individual short-term interests with the DAO's long-term prosperity. This study contributes to the understanding and effective design of blockchain-based governance systems.
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Cited by 1 Pith paper
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EconAgentic in DePIN Markets: A Large Language Model Approach to the Sharing Economy of Decentralized Physical Infrastructure
EconAgentic simulates DePIN markets with LLM agents and reports that patient node providers improve inclusion and stability, though this result follows from the model's definitions.
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