In today’s Web3 ecosystem, Decentralized Autonomous Organizations (DAOs) play a vital role. As more and more projects rely on DAO for governance decisions, how to lower the threshold for participation has become an urgent problem that needs to be solved. In particular, Ethereum’s high gas fees have undoubtedly become a major obstacle to many DAO governance votes. At this time, UMA's Optimistic Oracle provides an innovative solution that can help DAO automatically issue gas subsidies and encourage more participants to participate in governance.
Challenges of DAO governance
Many DAOs currently use on-chain voting for governance decisions, but this approach has some obvious flaws. First, on-chain voting requires users to pay gas fees, which is a considerable burden for many small participants. According to analysis by UMA’s data research team, DAO representatives spent a total of more than $1 million in gas fees for on-chain voting, with the average cost per proposal being approximately $2,056. For some DAOs, such as Uniswap, the voting cost for representatives is as high as $150,000, and the average gas fee per proposal reaches $4,071.
These high costs not only affect the enthusiasm of participants, but may also lead to the risk of centralization of governance. While some large representatives may not be put off by the cost of gas, for ordinary users such costs may put them off the opportunity to participate. Therefore, how to lower this threshold has become an important issue that DAO governance must face.
UMA’s Optimistic Oracle Solution
UMA’s optimistic oracle provides an innovative solution for DAO to automatically issue gas subsidies through optimistic workflows. This mechanism can automatically compensate voting representatives based on specific criteria, thus motivating more people to participate in governance. This not only increases voting participation, but also promotes truly decentralized governance.
Recently, UMA put forward a proposal on the Uniswap Governance Forum, proposing to integrate optimistic oracles into the Uniswap DAO so that gas subsidies can be issued efficiently. This proposal is not only meaningful for Uniswap DAO, but also has important reference value for all DAOs that use on-chain voting.
The importance of gas subsidies
The introduction of gas subsidies will enable more DAOs to attract and maintain the activity of their communities. In this way, both large and small DAOs can achieve a higher participation rate in the governance process. This not only has a direct impact on the decision-making quality of the DAO, but can also improve the cohesion of the community.
In addition, gas subsidies can reduce centralization risks in the governance process. When every participant is able to participate in governance without being affected by gas fees, the governance of the DAO will become more fair and transparent. Such changes will enable the DAO to better reflect the opinions of its community members, thereby improving the overall governance effect.
in conclusion
In the future of Web3, DAO governance will increasingly rely on technological innovation. UMA’s optimistic oracle provides a practical solution for DAO, which can effectively lower the threshold of gas voting and promote more participation. With the promotion of this technology, we have reason to believe that future DAO governance will become more efficient, fair and decentralized.
As time goes by, DAO will no longer be a game for a few people, but a governance platform that everyone can participate in. This change is not only a technological advancement, but also a profound understanding and practice of the concept of decentralized governance. Let us hope that UMA’s optimistic oracle can bring changes to more DAOs in the future and promote the continued development of the Web3 ecosystem.