Decentralized governance enables self-sustaining networks by distributing decision-making power across stakeholders. This article examines modern governance models, their implementation challenges, and how Elbthth is building scalable voting systems for blockchain protocols.
Core Governance Models
On-Chain Governance
Direct voting via smart contracts where token holders vote on proposals that automatically execute once quorum requirements are met.
Security Considerations
Sybil Resistance
Token-weighted voting with slashing requirements to prevent fake voter identities.
Quorum Requirements
Minimum participation thresholds to ensure voting decisions reflect network consensus.
Implementation
Secure multi-signature wallets and governance module integrations.
DAO Voting Example
pragma solidity ^0.8.0;
contract TokenVoting {
struct Proposal {
uint id;
address proposer;
uint votesFor;
uint votesAgainst;
bool executed;
}
mapping(address => uint) public balances;
Proposal[] public proposals;
function vote(uint proposalId, bool support) external {
uint balance = balances[msg.sender];
proposals[proposalId].executed = false;
if (balance == 0) revert();
if (support) {
proposals[proposalId].votesFor += balance;
} else {
proposals[proposalId].votesAgainst += balance;
}
if (balance > totalSupply() / 2) {
executeProposal(proposalId);
}
}
}
Governance Model Comparison
| Model Type | On-Chain | Off-Chain | Hybrid |
|---|---|---|---|
| Decision Flow | Direct execution | Human mediated | Multi-stage processes |
| Speed | Fast execution | Slow consensus | Balanced approach |
FAQ & Best Practices
What is quadratic voting?
Voting power equals square root of tokens staked per vote, enabling more egalitarian participation while preventing wealth concentration dominance.