Hello everyone,
I’ve been following the discussion around the proposal for a DAO-controlled neuron, which, as I understand, is being considered across the entire SNS network, starting with WaterNeuron. Given that this could have implications for all SNS and even NNS, I wanted to seek the broader community’s insights and understand if other DAOs have been part of this conversation. If feedback from other DAOs exists, it would be helpful to see where I can find it.
My points of uncertainty:
The proposal is intended to add security, unify community voice, support smaller neurons, streamline reward distribution, and balance the free market of neuron influence. But I’m struggling to see the added value of a DAO-controlled neuron, especially given the overlap with what DAOs already control directly. Here are specific points where I feel the benefits may be redundant:
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Reduced Single-Point Vulnerability
- As proposed, a DAO-controlled neuron is meant to avoid single points of failure by being collectively managed by the entire DAO rather than an individual or small group. The goal is to enhance security and resilience by making sure decisions don’t rest with any one person.
- Since the DAO already governs the SNS, any decisions the DAO makes already reflect the collective will. I understand the benefit of having an independent neuron controlled by a DAO, but what is the need for duplicating the control in a separate entity controlled by the same DAO it contributes to?
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Unified Representation of Community Will
- As I interpreted the proposal, a DAO-controlled neuron could act as a unified, representative voice that reflects the overall “average” stance of the DAO. Instead of each member choosing separate followees, the neuron would consolidate and amplify the DAO’s general perspective.
- Where I see redundancy: The DAO already functions as a unified decision-making body for the project. Members who want to follow the majority can do so by voting directly or following prominent neurons that represent their own and the DAO’s interests. This redundancy raises questions about why we need a separate neuron to repackage the DAO’s will. It seems to me more about how individuals manage their neurons rather than about reducing risks.
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Platform for Smaller Voices
- As suggested, a DAO neuron could promote lesser-known or smaller neurons by selecting them as followees, thereby providing visibility and helping them grow followership.
- Why It Might Feel Redundant: Supporting smaller voices is a valuable goal, but the DAO can already promote these neurons directly by encouraging members to explore diverse options. Additionally, members can independently advocate for valuable neurons without needing a central DAO neuron to direct this process. This approach seems simpler and preserves the flexibility of decentralized choice.
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Streamlined Reward Distribution
- An on-chain, DAO-controlled neuron could distribute rewards efficiently. For instance, followees of this neuron could receive rewards as an acknowledgment of their valuable contributions, and I agree with this claim.
- Where I fail to understand the benefits: The DAO’s existing treasury and governance mechanisms can already reward contributions directly. Adding a neuron to handle rewards may complicate what could be managed through simpler proposals and existing structures. There is certainly great value in an independent DAO controlled neuron like this, but where’s the benefit if it’s the same DAO controlling it? Couldn’t it be more direct?
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Free-Market Alignment and Network Effects
- The argument is that a DAO-controlled neuron could provide a balanced and fair option in the free market of neurons, consolidating community influence and countering private or centralized neurons that might dominate followership.
- Yes, in theory, a DAO-controlled neuron might offer a collective community choice, but in practice, it risks becoming a “default” followee if it’s the same DAO that controls it, discouraging members from exploring diverse neurons. Members in a free-market DAO already have the option to follow popular or prominent neurons aligned with the community’s values. This makes an “official” neuron unnecessary for maintaining free-market balance and risks reducing followership diversity. A decentralized governed neuron can easily be created independent from any specific DAO and promoted if the objective is to reduce VP in centralized managed ones.
I feel like the main issue addressed here is that some neurons have more influence in the ecosystem, and since those neurons are managed independently and with a more centralized structure, the willingness is to replace them with decentralized ones. Isn’t the whole point of liquid democracy for everyone to chose freely how to manage their neurons and delegations? Why introduce a function where DAO members need to consistently vote for a council and insure that it doesn’t gain overall control over the DAO? There are many benefits in having both centralized and decentralized managed neurons that contribute to the ecosystem, favouring one of them isn’t a good idea IMO. For example, Dfinity is a major contributor to ICP, it’s an independent organization that is managed internally in a centralized manner, and has a lot of influence overall. The goal shouldn’t be turning Dfinity into a NNS managed entity, rather than finding ways to incentivise more organizations like Dfinity to step up.
In conclusion, my overall questions are:
Have other DAOs been part of this discussion? Are they aligned with this direction, or are there varying views across projects? Any existing feedback would be helpful to understand if this proposal fits the wider IC ecosystem.
For those who support the DAO-controlled neuron, are there specific benefits here that I’m missing and the DAO couldn’t accomplish just as effectively through its existing governance tools?
Is the added layer of a DAO-controlled neuron consistent with our goal of encouraging decentralized governance? Does this extra complexity truly foster a diverse, free-market ecosystem, or does it risk creating a central “default” choice that could stifle that diversity?
I’d genuinely appreciate the community’s insights to better understand if the benefits of this proposal genuinely enhance SNS governance or if they risk creating unnecessary overlap and complexity.
Thanks for any thoughts you might share!