Miles Jennings, the head of decentralization at the venture capital firm a16z, sees the application of Machiavellian principles to decentralized governance in Web3 as a potential solution to address its current limitations.
“Web3 should triumph over web2 because web3 enables decentralization; decentralization reduces censorship and promotes liberty,” Jennings noted.
Utilizing Machiavellian Principles in Decentralized Governance
Jennings outlines the Machiavellian principles as guidelines for designing more robust and effective decentralized governance.
He provided a detailed explanation of the first concept, emphasizing the importance of minimizing governance.
The second idea involves the creation of a well-balanced leadership group that remains open to constant challenges and opposition. Additionally, it aims to establish a framework for the ongoing rotation of leadership and enhance the overall transparency and responsibility within this leadership cohort.
Read more: Decentralized Identity and the Future of Web3: What To Know
He clarified that the principle behind governance minimization is to keep it as straightforward as possible:
“DAOs can take advantage of the incentivized decentralization model to combat such trends and drive further governance minimization.”
Striving for Balance in Governance Structure
It also notes that the governance should be delegated.
Jenning notes that token holders, possessing a vested interest in the protocol’s governance, should act as a check on the power of the stakeholders.
“Because the livelihood of the stakeholders is ultimately dependent on the protocol, they are much more likely to take the governance of the protocol seriously than good actors who are simply participating in decentralized governance out of a spirit of civic duty.”
He provides an example of how a governance structure might take shape.
This example clarifies that the stakeholder council could consist of the following groups: the operators of the four highest transaction volume clients, the creators of the four leading third-party products and services, and the top four sellers.
He further argues that the leadership class divides and organizes their voting power into three separate series. Each will be aligned with specific constituencies. The leadership class collectively exercises their voting authority as a unified council.
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