Waves is in the process of introducing the Power Protocol, a DAO governance framework that will give DAOs, whether new or already established, the tools to manage their decentralized organizations.
The Waves team has announced that in January 2023, they will launch a new DAO governance architecture called Power Protocol. This protocol is intended to address the issues that accompany traditional token governance.
A DAO typically operates under a model where token holders are granted voting power that they use to make decisions within the organization.
Sasha Ivanov, Founder of Waves, asserted that a single token governance system is not suitable for DAO management, since it gives those with a lot of governance tokens control over the DAO ballots.
He stated that this could be achieved due to the absence of rewards and punishments in the elementary token governance structure.
The Waves team has declared that Power Protocol resolves the issues of lack of accountability and transparency within DAO governance architectures.
This fresh model combines crucial performance indicators determined by the community with financial rewards or punishments.
Rewarding positive behavior with tokens and punishing negative actions with vote slashing, where a portion of a user’s governance tokens are taken away and possibly destroyed, is a way to enforce accountability.
At the start of Power Protocol, an airdrop of the native token POWER will be conducted, with the eligibility criteria established by the community.
Additionally, Power DAO of Waves will be the first to be supported by the protocol.