Understanding Quadratic Voting in DAO Governance
In on-chain governance, voting power should reflect not just numbers but the intensity of preference. Quadratic voting ties vote cost to the square of votes, dampening the influence of large token holders while amplifying the voices of minority stakeholders.
- What is Quadratic Voting?
- How Quadratic Voting Works in DAOs
- Benefits and Implementation Challenges
- Practical Steps for DAOs
What is Quadratic Voting?
Quadratic voting allows voters to allocate multiple votes to express intensity, but the cost grows quadratically: if you cast v votes, your expenditure is v². This creates a spectrum of influence rather than a binary yes/no. For context, see the Quadratic voting page.
In practice, participants operate within a fixed budget of tokens or credits. A single vote costs 1 unit, a second vote costs 3 units (total 4), the third vote costs 5 units (total 9), and so on. The result is a cost-efficient signal: intense preferences require more investment, discouraging domination by whales and encouraging compromise.
How Quadratic Voting Works in DAOs
DAOs can apply the model by aggregating votes across proposals with a shared budget. Voters spend their tokens to buy votes; the weight of each proposal equals the sum of votes cast for it, constrained by the squared cost curve. To understand the concept in depth, examine tokenomics models in tokenomics.
Implementation must consider on-chain realities: budget caps, minted credits, and guardrails to prevent vote buying or coercion. For governance security, review risk management and stay mindful of potential security risks.
The broader theory is accessible here: Quadratic voting (reference for the underlying idea).
Benefits and Implementation Challenges
The approach offers a more representative signal, reducing the risk of tyranny by the largest holders and encouraging broader participation. Yet it adds complexity and can invite strategic behavior, necessitating careful design, education, and careful testing before live deployment.
Privacy and security are critical considerations. If protecting voter budgets is important, review how privacy features in crypto projects interact with voting mechanisms. For privacy-focused evaluations, see privacy practices.
Practical Steps for DAOs
- Define a clear voting budget and per-voter cap.
- Pilot the mechanism on a test proposal and record outcomes.
- Publish transparent cost curves and user guides to reduce misunderstandings.
- Audit the process with internal controls and external oversight to manage risks.
