How can we incentivize token holders to vote thoughtfully?
- EOSIO Telos
I see a bright future for DPoS (Delegated Proof of Stake) blockchains, so long as the token holders of those chains are actively engaged and participating in governance. We recently witnessed the consequences of voter apathy when Tron tookover the Steem blockchain by misappropriating customer funds left on exchanges.
How can we incentivize token holders to participate in governance, rather than leave their tokens idle in their wallet or on an exchange? I think it's great that we already have REX (Resource Exchange) to reward token holders for vesting their capital and lending it to dapp developers, but how can we encourage them to actually vote on Block Producers (BPs), proxies, and proposals?
Voting rewards - I think token holders would spend more time actively researching and voting for BPs if their efforts were rewarded in the form of Telos tokens. The reward should be proportional to the number of tokens staked, and remain the same regardless of which BP the token holder votes for. WAX, another EOSIO chain, has already implemented voter rewards, and so far it appears to be effective.
Could we also extend voter rewards to people who vote on funding proposals and protocol upgrades? After all, it takes time to research proposals and cast an educated vote, and I think token holders would be more motivated to vote if their efforts were rewarded.
Vote decay - I think voters should only receive rewards if they are actively voting - perhaps on a weekly or monthly basis. If they stop voting, the weight of their vote should gradually decay, along with their rewards.
Education - Of course, some token holders may just blindly revote when necessary to continue receiving rewards. Perhaps an information box in the voting section of the SQRL client and the various web wallets, explaining how their vote ultimately impacts the value of the chain, would prompt holders to do more research into the BPs, proxies, and proposals.
Looking forward to your thoughts!