Decentraland: 60% of the voting rights are controlled by 18 wallets. It is proposed to create new governance tokens for voting

On February 18, the metadata platform Decentraland released the January 2023 community update, which pointed out that there was a problem with the distribution of voting rights of Decentraland DAO. Of the current 85.5 million active voting rights, 60% of the voting rights were controlled by 18 wallets. Therefore, Decentraland DAO hopes to encourage voting participation around incentives, including the proposal to launch a tokenized voting strategy and create a new governance token separate from MANA for voting.

Interpretation of this information:

The recent community update released by the metadata platform Decentraland on February 18 highlighted an issue with the distribution of voting rights within Decentraland DAO. The update revealed that 60% of the current 85.5 million active voting rights were controlled by only 18 wallets, which have been seen as a major obstacle to promoting decentralized decision-making processes. As a result, Decentraland DAO is considering new incentives to encourage more widespread voting participation, including launching a tokenized voting strategy and creating a new governance token solely for voting purposes.

Decentraland is a virtual reality platform that is collectively owned and operated by a decentralized autonomous organization or DAO. Decentraland DAO allows token holders to participate in the decision-making process of the platform, including voting on proposals for new developments, policy changes, and investment opportunities. However, the current system setup has resulted in a skewed distribution of voting power, with a few large wallets holding a disproportionate amount of influence over the platform’s direction.

To address this issue, Decentraland DAO is exploring alternative proposals that can promote broader participation in voting. Tokenizing the voting process and introducing a separate governance token can incentivize more people to participate in the decision-making process. By creating a new token strictly for voting, those who actively participate in the voting process can receive more rewards compared to those who do not engage or participate. This would help to ensure a more equitable distribution of voting power, making it more difficult for a small group of individuals to hold a disproportionate amount of influence over the platform.

The three keywords that summarize the content are:

1. Voting Rights Distribution: Decentraland DAO’s update highlighted the issue of a disproportionate distribution of voting rights in the platform, with just 18 wallets controlling 60% of the active voting rights.

2. Tokenized Voting Strategy: The update suggested a proposal to launch a tokenized voting strategy to incentivize more widespread voting participation, where a new governance token would be introduced solely for voting purposes.

3. Governance Token: The creation of a new governance token for voting could promote wider participation in decision-making processes, ensuring a more equitable distribution of power among token holders.