AI-Assisted Governance

Token-based voting mechanisms introduce tokens as an intermediary between the voter and the vote. Instead of following the democratic principle of one person equals one voice, one ticket equals one vote. DAOs use a few different voting mechanisms for their governance. Still, we are focusing on majority-based token-based voting since it is the simplest to implement in Web3, and currently the most popular.

Like all potential on-chain voting systems, token-based systems have transparency and ledger recording baked in. This type of voting is often used to make decisions about a DAO’s growth and development. It has also been used successfully in steering private Web3 organizations such as Gitcoin and Zcash. (Gitcoin uses quadratic funding as a voting mechanism to allocate grants but relies on simple token-based voting for its governance.)

However, when it comes to voting in political elections or making decisions that impact resource allocation across large populations, token-based voting systems have several inherent problems.

Token-based voting is impacted by wealth concentration

In most cases, people (or wallet owners) decide how many tokens to commit for their vote on a given proposal. Chainalysis reported in June 2022 that 1% of token holders hold 90% of the voting power in ten major DAOs.

Various problems, including voter apathy, low participation, and centralized control, have plagued traditional governance mechanisms. These issues have made it difficult for stakeholders to have a say in the governance of their respective platforms. However, with blockchain technology and smart contracts, new governance models have emerged that promise to revolutionize how media are governed. FreelancoDAO leverages the power of AI and oracles to create a new kind of governance model that is more efficient, transparent, and democratic.

AI-powered decision-making algorithms can help decision-making, enabling a faster and more efficient dispute resolution process. By partnering with Chainlink Oracles, we can ensure that AI makes censorship-resistant and automated decisions free from human influence or bias. This AI-powered governance model provides a fair and transparent mechanism for resolving disputes and making important platform decisions.