A community for the latest discussions about the cutting edge of crypto design, it's culture and significant crypto news. Decentralize everything. Check out our [Community Guidelines](https://relevant.community/crypto/post/6122269e61d1cd005a877277/62427d3ed587ad005b647828)
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© 2020 Relevant Protocols Inc.
A community for the latest discussions about the cutting edge of crypto design, it's culture and significant crypto news. Decentralize everything. Check out our [Community Guidelines](https://relevant.community/crypto/post/6122269e61d1cd005a877277/62427d3ed587ad005b647828)
53635 Members
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© 2020 Relevant Protocols Inc.
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"In most DAOs today, users face significant opportunity costs when participating in governance. They have to lock up their tokens in voting contracts and forgo exposure to lending/borrowing or yield generating opportunities. This creates a dynamic in which large sets of users choose not to get involved in governance and prefer to deposit their tokens in interest-bearing positions or borrow against them instead. At the same time, this allows large actors to gain more influence in the system. As a result, many teams or small sets of whales end up running most processes within DAOs due to a lack of community participation, which goes against the purpose of decentralization in the first place. Essentially, Voting Vaults are a way to remedy plutocracy and low voter turnout. They allow for more users to get involved or delegate in governance, even if their governance tokens are locked in other platforms."
"In most DAOs today, users face significant opportunity costs when participating in governance. They have to lock up their tokens in voting contracts and forgo exposure to lending/borrowing or yield generating opportunities. This creates a dynamic in which large sets of users choose not to get involved in governance and prefer to deposit their tokens in interest-bearing positions or borrow against them instead. At the same time, this allows large actors to gain more influence in the system. As a result, many teams or small sets of whales end up running most processes within DAOs due to a lack of community participation, which goes against the purpose of decentralization in the first place. Essentially, Voting Vaults are a way to remedy plutocracy and low voter turnout. They allow for more users to get involved or delegate in governance, even if their governance tokens are locked in other platforms."
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