Voting types
The Governance Tool operates on a simple majority voting system. This approach counts only the percentage of "yes" votes and does not require a quorum. You have the flexibility to customize the tool for various voting strategies.
General types of voting in DAOs
Majority voting
A proposal passes if it receives more than a specified percentage of "yes" votes.
- Use case: Commonly used in democratic governance.
- Pros: Simple and widely understood.
- Cons: May allow proposals to pass with low participation if there is no quorum required.
Quorum-based voting
A proposal is only valid if it reaches a minimum number of votes (quorum).
- Use case: Ensures that decisions have sufficient participation.
- Pros: Prevents a small group from making significant decisions.
- Cons: Can delay progress if voter turnout is low.
Supermajority voting
This method requires a higher threshold (e.g., ⅔ or ¾ approval) for a proposal to pass.
- Use case: Used for structural changes like amendments to governance rules.
- Pros: Ensures a strong consensus.
- Cons: Harder to pass, which may slow down decision-making.
Lazy voting
Proposals pass by default unless a specific number of participants vote against them.
- Use case: Reduces voter fatigue in systems with frequent proposals.
- Pros: Increases efficiency and speeds up decisions.
- Cons: Risk of unintended approvals if users remain inactive.
Unanimous voting
All eligible voters must vote "yes" for a proposal to pass.
- Use case: Used for high-stakes decisions (e.g., constitutional changes).
- Pros: Guarantees full consensus.
- Cons: A single dissenting vote can block the proposal, potentially causing deadlock.
Plurality voting
The option with the most votes wins, even if it does not receive a majority of the votes.
- Use case: Suitable for multi-option proposals.
- Pros: Allows for multiple choices in governance.
- Cons: A winner may emerge with less than 50 percent support, leading to fragmented results.
Ranked-choice voting
Voters rank proposals by preference. If no option wins outright, votes are redistributed.
- Use case: Used in elections and proposals with multiple competing options.
- Pros: Reduces vote splitting and promotes compromise.
- Cons: More complex to implement and count.
Weighted voting
Voting power is determined by stake, token balance, or other predefined criteria.
- Use case: The Governance Tool can configure voting power based on CHR holdings, stake, or hybrid models.
- Pros: Reflects varying levels of commitment and investment.
- Cons: There is a risk of centralization if power is concentrated among a few users.
Veto voting
Certain users (e.g., admins or counselors) can block a proposal even if it receives majority support.
- Use case: The Governance Tool allows **admins or counselors to veto during a designated period.
- Pros: Provides an additional layer of review and oversight.
- Cons: Can limit decentralized decision-making.
Approval voting
Voters can approve multiple proposals, and the option with the most approvals wins.
- Use case: Suitable for scenarios where multiple proposals can coexist.
- Pros: Encourages broad representation of preferences.
- Cons: May dilute the vote impact if users approve too many proposals.