Are there examples of on-chain and off-chain governance working together?

Question

I am aware of off-chain governance and on-chain governance examples but I wanted to create a hybrid in between: A DAO where off-chain user scores are reflected to the on-chain and total voting power is calculated based on the combination: the amount of an ERC20 user holds and off-chain user scores.

You can imagine off-chain scores as reputation points in StackExchange. While the specifics of the concept may evolve, the fundamental principle of harmonizing these two realms remains central. Are there any existing examples or similar projects that demonstrate this integration?

Answer 1

A DAO where off-chain user scores are reflected to the on-chain and total voting power is calculated based on the combination: the amount of an ERC20 user holds and off-chain user scores.

I feel the best bet would be take a look of Snapshot and a write a custom adapter for your off chain points.

There are no existing solutions, because the cleanest solution here is to bring any points to on-chain as tokens for voting, instead of writing a custom oracle for them. If the voting is based on off-chain points, then the whole voting could happen off-chain as well - whoever counts the points can manipulate the result any way they wish.

Answer 2

Here's a breakdown of popular blockchain protocols using hybrid governance mechanisms, along with insights into how they function:

1. MakerDAO

Governance Structure:

Off-chain: Community participates in discussions and signaling votes on forums and social media. Specialized groups, called "Core Units", facilitate specific aspects of the protocol.

On-chain: Final decisions on major upgrades and risk parameters are made via on-chain voting by MKR token holders.

Mechanism: Informal off-chain discussion is crucial for identifying issues and shaping proposals before they progress to formal on-chain voting.

Significance: MakerDAO is one of the pioneers of DAO structures and their governance demonstrates a multi-tiered approach allowing speed and agility for iterative processes.

2. Compound Finance

Governance Structure:

Off-chain: Proposals and debates take place on Compound's governance forum.

On-chain: Proposals must go through a timelock period, followed by on-chain voting using COMP tokens.

Mechanism: This creates a measured process, allowing discussion and code review before binding decisions and lessening the risk of hasty implementation.

Significance: Compound showcases how technical proposals can be thoroughly vetted in off-chain arenas before formalization through on-chain voting.

3. Polkadot / Kusama

Governance Structure

Off-chain: An elected Governing Council, along with discussions on forums and technical committees, manages proposal generation and prioritization.

On-chain: Major protocol changes are governed by on-chain referendums open to all DOT (or KSM) holders.

Mechanism: Polkadot has complex on-chain mechanics with weighted voting depending on lockup periods for tokens. The hybrid mechanism lets their Council streamline initial discussions and manage technical elements off-chain.

Significance: This highlights governance that is adaptable for highly technical changes needed for a complex parachain system.

4. Decentraland

Governance Structure:

Off-chain: Community voting occurs on a user-friendly interface (like Snapshot) for various matters (e.g., land auctions, content decisions).

On-chain: A Decentraland Security Council and the DAO have authority for smart contract implementation and emergency actions.

Mechanism: Decentraland prioritizes participation by decoupling much of its governance decision-making from costly on-chain execution.

Significance: Provides a model for governing user-driven content and assets within a virtual world ecosystem.