Web3 notes: The Goals of Governance
The Goals of Governance - Matthew Di Ferrante - ZK Labs
* Decision makers
* Direct users
* Indirect users
* Adversaries (philosophy/signals)
*** these categories can be mapped to Olsens to“provisioners and appropriators” lens from Governing the Commons.
Criteria for decisions should be as objective as possible.
A decision that incurs high cost or overhead must be worth the positive it provides (or sufficiently negate a negative - course correction)
Example: Fund recovery (hard fork)
Affects: Layer 1 transaction finality
Benefit: Rescue the locked funds
Risk: Changes expectations for a fundamental property that the protocol relies on. (Protocol affecting: single sig, multi-sig, contract-sig)
Incentives are difficult in governance, as what is desirable to any one side (in terms of process) is generally undesirable to the the whole. (e.g. EU Galileo Project row or UBS??)
Its better to make a bad choice with good governance than a good choice with bad governance.
Good governance favours what benefits the majority, bad governance values what appeases the majority.
Don't formalise a muddy signal.