A good use case in tezos that DAO based dapps would greatly benefit of, would be the access to the roll based self-amendment system that TEZ protocol uses.
Let’s say a DAO Dapp which is a swap/liquidity provider platform have their own governance token, i.e. we will call this token GDAO for the sake of the argument, could it be possible the DAO smart contract could use the built-in governance protocol of TEZ for their own benefit?
In theory, roll based governance will allow DAO Dapps to have collateral based proxies (delegates). One of the problems of DAOs is when they introduce proxies with NO collateral requirement and INFINITE delegation capacity, which will turn into a nest for collusion and centralization of voting weight. Many DAOs appeal to this proxy design without thinking of the consequences, but they do it because lazy people prefer to delegate instead of voting.
If dapps are being able to use the same TEZ built-in governance, they could greatly benefit from its collateral based delegates (proxies). From an economical point of view, a delegate which is required to own collateral is less prone to collude since now he owns a skin-in-the-game, also they could only receive a finite delegation amount according to his bond requirement. This will allow lazy people to delegate, yet, the incentives of delegates will now be aligned with delegators, greatly mitigating collusion.
So let’s say GDAO token roll owners will have the same built-in amendment (4-stage process) as TEZ, 1 roll 1 vote, and the GDAO owners token holders that would prefer to delegate, will be able to delegate to proxies that already own collateral in bonds. This design allows having the benefits from proxies (attending low participation) without the negative collusion risks of non-collateral/bond proxies, which creates misalignment of interests between delegates and delegators.
IF DAO dapps can access to the same amendment process, it would be a very attractive platform for DAO’s. The question is, is it possible?
