Tezos
$0.3806 -0.31%
XTZ · 31w

A (possibly crazy) idea: lock up your Tezos to increase voting power

Take what I’m about to suggest with a grain of salt: this is more brainstorming than a fully thought out idea. Suppose you could lock up your XTZ for **t** years, with the benefit that your voting power is multiplied by **f\(t\)**. By this I mean that every vote you cast on protocol upgrades results in **f\(t\)** votes instead. A reasonable function might be **f\(t\)=min\(2\*sqrt\(t\),10\)**. In other words: * You double your voting power by locking up your Tezos for one year. * You quadruple your voting power by locking up your Tezos for four years. * Your voting power is multiplied by 8 if you lock up your Tezos for 16 years. Other functions **f\(t\)** may be better; this **f\(t\)** incentivizes people to lock up their XTZ for a few years, but after that diminishing returns set in. **What problem is this trying to solve?** It makes sure voting decisions are based on what’s good for the protocol long\-term. This is a real problem: coinholders may favor decisions that are good only in the short\-term if they are looking to sell after a quick bump. Examples of such decisions might be : * Excessive spending on marketing. * Announcements of meaningless partnerships. * Even right now on this forum, there are some voices who have expressed the opinion that Tezos should hurry it’s code audit. This is good in the short term if you are looking to dump your holdings on launch day but potentially destructive if a critical bug is found later on. Even if the majority of coinholders are motivated by the long\-term performance of the protocol, in the face of a genuine disagreement a minority that focuses on short\-term gains may end up swinging the vote; this protocol change decreases the probability of this event. An additional benefit would be a likely increase in price that comes from a significant fraction of XTZ being locked up. The relevant analogy is the ETH [hodl contract](https://www.reddit.com/r/ethereum/comments/6eu453/hodlethereumcom_the_worlds_first_proofof...
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