Miles Jennings Advocates for Machiavellian Principles in Decentralized Governance
Miles Jennings, the head of decentralization at venture capital firm a16z, believes that applying Machiavellian principles to decentralized governance in Web3 can help overcome its current limitations. According to Jennings, Web3 should prevail over Web2 because it enables decentralization, which reduces censorship and promotes liberty.
Utilizing Machiavellian Principles in Decentralized Governance
Jennings explains that the use of Machiavellian principles can guide the design of more robust and effective decentralized governance systems. He highlights two key ideas: reducing governance and establishing a well-balanced leadership group open to challenges and opposition. This framework also aims to enhance transparency and responsibility within the leadership cohort through ongoing rotation.
Jennings emphasizes that governance should be kept as straightforward as possible, utilizing incentivized decentralization models employed by DAOs to minimize governance.
Striving for Balance in Governance Structure
Jennings suggests that governance should be delegated, with token holders acting as a check on stakeholders’ power. He argues that stakeholders are more likely to take governance seriously since their livelihood depends on the protocol, compared to those participating out of civic duty.
He provides an example of a possible governance structure where a stakeholder council consists of operators of high-volume clients, creators of third-party products and services, and top sellers. The leadership class divides its voting power into three series aligned with specific constituencies.
Hot Take: Regulation Challenges for DAOs
Angie Malltezi, CSO of Web3 startup Shipyard Software, highlights the significant obstacle posed by regulation for DAOs. Determining a DAO’s location, intentions, and operational behavior are among the foremost challenges faced in this regard.
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