A significant step forward in the evolution of DAO governance
Gamprin-Bendern, Liechtenstein, July 11, 2024 (GLOBE NEWSWIRE) --
Professor Jeff Strnad from Stanford University has joined the Economic Advisory Panel of Q International Foundation, the not-for-profit organization behind the Q Protocol. The collaboration between Q International Foundation and Prof. Strnad aims to help address the pressing governance challenges faced by Decentralized Autonomous Organizations (DAOs).
Addressing DAO Governance Challenges
DAOs suffer from a fundamental dilemma: On the one hand, they need to be decentralized—otherwise, there is no point in organizing as a DAO. On the other hand, decentralization often comes with negative side effects: absence of leadership, slow decision-making, and lack of accountability are problems that are all too familiar for many DAO participants. The result: most DAOs do not meet expectations, and many are outright failures.
Innovative Governance Concept: Contestable Control
In a recent paper, Professor Strnad proposes a novel solution to many of the issues DAOs face. His “contestable control approach” allows for DAOs to remain decentralized while ensuring efficient and effective management. The essence of this framework is that control of the DAO is continuously up for grabs to the highest bidder. Successful bidders are rewarded for the value they add, and DAO token holders benefit from an increase in the DAO token’s price.
Collaboration with Q International Foundation
Q International Foundation aims to create a prototype implementation of the contestable control framework, leveraging the Q Protocol’s capabilities to enforce the necessary conditions that cannot be addressed by smart contract code alone.
Professor Strnad explains, "DAOs have immense potential, but they often struggle with decentralization leading to inefficiencies and lack of accountability. The contestable control approach provides a potential solution that ensures that DAOs can be both decentralized and effectively managed. I am excited that Q International Foundation is interested in putting this idea into practice. The Q Protocol with its in-built ability to enforce non-deterministic rules is an ideal platform for testing this novel approach to DAO governance.
I am looking forward to serving as advisor to Q International Foundation with respect to this project as well as others “Professor Strnad’s approach to DAO governance aligns perfectly with Q’s mission to advance decentralized governance beyond the limitations of code-is-law. We aim to set a new standard for DAOs, ensuring they are not only decentralized but also accountable, effective and efficient,” comments Martin Schmidt, a key contributor to the Q Protocol.
About Professor Jeff Strnad
Professor Jeff Strnad is Charles A. Beardsley Professor of Law at Stanford Law School. He teaches various courses on blockchain and cryptocurrencies, including a course on blockchain governance.
Prof. Strnad’s research spans the fields of taxation, public finance, finance, and empirical analysis. He has published leading works on the taxation of financial instruments and on the application of Bayesian empirical methods to law. An innovative teacher of quantitative methods, Professor Strnad has created original courses in empirical analysis and game theory. Before joining the Stanford Law School faculty in 1997, he was a professor of law and economics at the California Institute of Technology and the John B. Milliken Professor of Taxation at the University of Southern California Gould School of Law.
About Q Protocol
Q is a novel blockchain protocol acting as a fundamental governance layer in Web3. Going beyond the code-is-law paradigm, it combines the benefits of a public, open, and decentralized ledger with the transparency and predictability of enforceable private contracts. Q enables adoption by many use cases that desire decentralization but require scalability and dependability.
About Q International Foundation
Q International Foundation is a not-for-profit organization located in Liechtenstein. Its purpose is to support and grow decentralized applications and ecosystems. Q International Foundation is the initiator of the Q protocol and is supporting the project.
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