A Decentralized Organization building DeFi governance infrastructure: Finance.vote
What is Finance.vote?
Finance.vote is a decentralized application (Dapps) for reaching consensus across the cryptospace as a whole. It provides a space for users to engage with market discovery on new and existing tokens and be incentivized to share their perception on future price action.
finance.vote begins life as a prediction market system like Augur, but with token economics that guarantees liquidity. More broadly, it is a dynamic governance architecture that aims to take crypto governance into new and interesting territories.
Finance.vote has three crypto economic components:
• Prediction and Market Discovery.
• Second Layer Governance.
- Decentralized Social Trading.
Prediction and Market Discovery
This market dynamics demonstrates huge potential as tools for improving large scale decision making and governance systems. This led to introduction of the semantic ballot voting system; which is a new kind of voting system designed specifically for finance.vote that uses quadratic voting.
Here users are presented with the ability to vote on the future market success (or failure) of tokens from across the cryptospace. This allows users to make market bets across multiple tokens, all contained in a single transaction. and it is designed to facilitate the generation of market alpha and the discovery of up and coming tokens from the most viable projects. Each participant mints a Digital Identity Token which are in the form of ERC721 compatible NFTs, this makes the cost of voting for an issue quadratic and not linear.
Each week $FVT rewards are claimed from reward pools by users who are correct in their predictions.
The act of creating multiple identities with the intent of corrupting a system is known as a Sybil attack. In the finance.vote ecosystem, Sybil resistance takes the form of ensuring that users cannot corrupt the consensus outcome by splitting votes across multiple ballots and fabricating multiple identities. In reality, this cannot be entirely stopped. We therefore take an economic, pay-to-Sybil mitigation approach, to reach a state where good intelligence on the number of Sybil in the system is known. Before a user can engage in voting activity on finance.vote, users must acquire a minimum of 100 $FVT, which will be sent to the identity minting address and burnt, which assigns voting rights to a user Ethereum address. Only addresses, where a DIT is present will be able to vote, addresses with multiple DITs will be able to vote multiple times.
How to mint ID: https://www.publish0x.com/financevote/how-to-mint-identity-and-vote-in-financevote-xpnmewr
Second Layer Governance
Governance is a means which allows us to get things done as a group. it is the method of making decisions about decisions. it is the act of generating effective processes that allow people to organize at scale and move towards a productive outcome. it is the rationale why we have the fashionable civilization that we have today, allowing us to make coherent social self-organized structures that churn out innovation and productivity.
Cryptonetworks require consistency, transparency and incredibly high levels of security and this does not lend itself to particularly agile governance structures. Some networks have attempted to innovate beyond this and in many cases it has led to corruption, collusion and sometimes outright failure of the tokens resulting in permanent loss of funds. This is why Finance.vote introduced Second layer Governance.
Second layer governance is a debating system that will allow users to aggregate influence on their favourite crypto networks. The finance.vote second layer governance system is designed to allow social signals to form, be amplified and captured in token specific miniDAOs. These systems will demonstrate the first use of the semantic ballot voting system outside of asset price discovery. Here the system will be turned towards dialogue, content curation and decision making. Decisions and proposals that receive sufficient consensus will be able to transition to the layer one DAO, the Decentralized Monetary funds for consideration. you will be able to reach consensus in group sizes of your choosing and trustlessly trade the assets that are worth holding, as well as participate and be rewarded for sharing market alpha as Social consensus systems are the true game-changer in crypto.
Finance.vote started life on the Ethereum platform and will always have Ethereum based components it has also added the Binance Smart Chain and is currently exploring more networks.
The .vote consensus mechanism is the means through which token stake is used to weight voting power in each of the miniDAOs in the finance.vote ecosystem. it utilizes a pyramidic stacking mechanism to normalize vote power across a voting population, ensuring that large token holders do not have an extremely out weighted voice in the system to the point of manipulation.
For example, a user with 100,000 $FVT tokens staked on the $FVT miniDAO has the highest stake on that node. The next nearest token balances are 95,000, 90,000 and 80,000. The 95,000 and the 90,000 stakers occupy the second staking tier and the 80,000 staker takes the third slot along with two others. The 100,000 staker has 1,000 $V and the 95,000 and 90,000 stakers have 500 $V, and next tier down have 333 $V and so on. This mechanism incentivizes users to purchase $FVT to stake in their chosen miniDAOs to raise their influence.
Decentralised Social Trading
The finance.vote social trading system evolved out of the vote markets, into a gamified social trading system. The digital identity tokens utilized in the vote markets, earn reputation and therefore a rank in the system. This will allow status systems to be generated such as social league tables, whereby NFT identities can be displayed in a list in accordance with their performance in the various vote markets.
FVT social trading system begins by allowing quadratic votes made by an identity to be tokenized. This will allow users to accrue reputation through effective market predictions and allow other users to stake $FVT on their identity. Staking users will win, if that identity wins, with the host identity earning 10% of the profits. Staking positions take the form of ERC20 tokens ($SP tokens) that represent a stake position on a quadratic vote associated with a particular identity.
For example: 10 $FVT1SP tokens, will represent a share in the staking pool that is won by the $FVT1 identity based on their market bet. Adding and removing $FVT to a stake will be allowed until voting stops, after which $SP tokens will be tradable on the secondary market until the bet is settled. This mechanism allows users to take delegated hedged market bets against other staking participants in our vote markets. They are decentralized quadratic options generated by users with a history of market performance.
WHAT’S COMING NEXT FOR FINANCE.VOTE
If you want to know more about Finance.vote this is their whitepaper which contains a whole lot of information to digest. This article is just but a part of what finance.vote is doing.
Here is the link to their respective channels:
