System description

Assumptions

Boxes

• Plain white boxes: expected outcomes which are relevant to DAOs.
• Plain gray boxes: positive governance outcomes, which fulfill Butter’s goal.
• Transparent boxes with plain borders: effects produced (right of an arrow) or expected (left of an arrow) by Butter protocol and DAO.
• Transparent boxes with dotted borders: Butter protocol items as effect producers.

Arrows

• Colored arrows represent action triggers for a given agent to produce an outcome:
  • Pink arrows: Voters.
  • Orange arrows: Delegates.
  • Green arrows: DAOs.
• [intrinsic motivators] Gray arrows represent logical implications.
• [extrinsic motivators] Gray dotted arrows represent outcomes of the protocol.

Glossary

• TH: Token Holders.
• Del: Delegate.
• Governance Outcomes > 0: positive governance outcomes, like governance alignment and delegate accountability.
• Governance Alignment: alignment among governance participants.
• Delegate Alignment with Token Holders: alignment of a given delegate with the Voters who delegate to her.
• Representation: proportion of token holders who are represented (specifically, delegating to an active delegate).

For example, the expected increase in voting power, rewards and DAO outcomes triggers Voters to aggregate their voting power.

https://whimsical.com/assumptions-logic-Kj2z4nygYMthxxNHoWSWAu