Optimistic Governance

Introduction

Liquid democracy, where each token represents one vote, is an ideal governance model in theory. However, in practice, many DAOs face challenges such as voter apathy, lack of technical knowledge, and an overwhelming volume of complex proposals. These barriers can significantly reduce the effectiveness and speed of decision-making.

The Case for Optimistic Governance

Optimistic governance offers a solution to these challenges by assuming that most proposals are approved, unless explicitly veto-ed by delegates otherwise. In this model, the decision-making process is streamlined, with a clear mechanism for delegates or community members to intervene if necessary. This is particularly useful for proposals related to maintenance upgrades, technical changes, or parameter adjustments, which may not require extensive community deliberation, but still need oversight and the ability to veto in the edge case that the proposed changes are malicious.