The average number of votes cast on governance proposals is 21M, which represents approx 5% of total voting power today. This is a surprisingly low voter turnout. ICP is a governance token. It does not exist for passive investment. Fortunately, the ICP tokenomics are designed to incentivize participation in governance. If you vote, then you get voting rewards. If you do not vote, then you do not get voting rewards. Voting rewards are distributed proportional to the voting power of all the neurons that cast votes. The key to success in maximizing voting rewards is to vote on all proposals.
A proposal (34485) was passed on December 14, 2021 as a motion proposal that suggested two fundamental changes: a) disable default following for proposals on the governance topic and b) weigh the voting rewards based on the topic (Exchange Rate: 0.01; Governance: 20; Other: 1). When this proposal finally gets implemented, there will be a meaningful difference in voting rewards between neurons that vote on governance topics and neurons that do not vote on governance topics. Every neuron owner that wants to maximize voting rewards will want to actively participate in governance. Higher participation rates on Governance topics should help ensure decentralized decisions that are in the long term best interest of the internet computer.
There are two ways to ensure that your neuron is maximizing voting rewards: 1) manually vote on each proposal or 2) manually configure your neuron with a Followee for the Governance topic that you trust to always vote according to your best interests. Make sure you follow a neuron you trust to vote and make sure you configure your neuron correctly.
A series of Governance proposals that are intended to advertise all the community neurons, educate the IC governing body on the power of liquid democracy, and educate the IC governing body on how to configure Followees will be submitted to the NNS daily for approximately 30 days. These proposals are intended to use the voting reward system to motivate and increase governance participation. A consequence of this campaign will be a meaningful increase in voting rewards to neuron owners that manually vote or actively follow other neurons that vote and a meaningful decrease in voting rewards to neuron owners that do not vote or follow neurons that abstain.
Implementation of proposal 34485 as well as this proposal campaign should stir up discussion about how ICP tokenomics are designed to incentivize active governance participation and how the tokenomics can and should evolve to meet the needs of the IC ecosystem. It should not take long before people start noticing that their voting rewards have changed significantly each day and they will start asking questions on social media and the forum. Active IC community members will be aware of what is going on and can point them to the NNS dApp to learn more about each topic, configure their Followees, and vote manually. Ideally this program will result in a lot more people configuring Followees for the Governance topic. Hopefully, it also inspires more organizations to set up their own neurons and offer them as reliable Followees to the IC community.
The goal is for these proposals to result in significant changes in participation rates in NNS voting, but they are not proposals for changes to the IC code. It makes no difference if the proposals pass or fail (although I do hope they pass) because those results will not change the objective of the campaign and anyone is free to submit any proposal any time. It is possible that all 30 proposals will result in loss of 1 ICP each if the proposals do not pass, but it is also possible that they start passing as more people configure their neurons to follow community neurons that vote. A measure of success for this program is to see an increase in total votes cast for each proposal as each is executed over time. A stretch goal is to see over 50% voter participation in each proposal by the end of the campaign.
Three of these daily proposals are live at the time of this writing. All known community neurons have already voted, so you will need to vote manually if you don’t have a Followee configured for the Governance topic.
The plan is to submit 1 governance proposal per day, but only if there were no other governance proposals already submitted that day. Hence, these proposals will not be submitted until approx 11:00 PM UTC most days. Potential topics that will be covered in this campaign are listed below. The Summary of the proposal would be a simple 1 - 3 paragraph explanation of each topic and would include links to additional educational material regarding each topic.
- The strategy and purpose of this new education program regarding governance participation
- The new weighting system for proposal topics
- Governance resources: IC Wiki, The Forum, Dashboard, ICP Maximalist Network, Internet Computer Weekly
- Current known community neurons and an invitation to become a community neuron
- Why it makes sense for Dfinity and ICA to abstain from Governance proposals
- How liquid democracy works
- How to set Followees for the Governance topic
- The first results of voting participation in this education program
- Do the whales really control NNS decisions or is it liquid democracy?
- What proposal topics and types can push code?
- How the NNS decides how a neuron votes if 1 Followee is configured; All Topics and Governance Topics
- The purpose of voting rewards…to incentivize governance participation
- Update on known community neurons
- How the NNS decides how a neuron votes if 2 Followees are configured
- Why it makes sense for Dfinity and ICA to vote on Governance proposals
- How a neuron becomes a named Followee in the NNS dApp
- How the NNS decides how a neuron votes if 15 Followees are configured
- Why it’s important for organizations to create neurons that can become named Followees in the NNS dApp
- Midway results of voting participation in this education program
- Another update on known community neurons
- Current voting power of DF and ICA
- Suggestions for best practices for how organizations can configure their Followee neuron
- Current options for how a named Followee neuron can be created and managed
- How the NNS decides how a neuron votes if 3 Followees are configured
- How the NNS decides how a neuron votes if 4 Followees are configured
- Current histogram of voting power by dissolve delay
- How the NNS decides how a neuron votes if 10 Followees are configured
- Best practices for submitting and advocating NNS proposals by the IC community
- How the NNS decides how a neuron votes if 5 Followees are configured
- Final update on known community neurons
- Final results of voting participation in this education program…did it work
Please note that I advocate for having many options for Followees in the IC community. This campaign will have a strong tone of encouraging new organizations to create Followee neurons. Personally, I think it would be a bad situation to see the named Followee list in the NNS dApp have only a couple of options that gain a lot of voting power. I want to inspire much more decentralized governance participation. Hence, this education campaign is not an advertisement for people to follow any specific neuron.
In my opinion, community neurons should also offer transparency regarding who is voting, how they vote, how their neuron is managed, and how much voting power they have through liquid democracy. None of this is required, but these are the things I would be looking for as a community member who is trying to decide who to follow.
For anyone who wants their community neuron to be included in this proposals campaign, please send me a DM here on the forum, on Twitter @BartlettWenzel, or on DSCVR, Distrikt, or OpenChat @wpb. Also feel free to simply post your information in a comment here on this forum topic.
I also believe there is a need to develop a website that is focused on IC governance in a way that makes it easy for the community to participate in governance as well as monitor governance participation rates and tokenomic incentive effectiveness. I see it as critical infrastructure for the IC. Please reach out to me if you are interested in assisting with this project. There will be an advisory board to ensure that the website is built with features that the community believes are important, but it will start as an MVP. It will also be necessary to find UI/UX, Front End, and Back End developers to build this website.