VeChain News: VeBetterDAO Proposal Seeks Suspension of Quadratic Voting and Funding Until Sybil Attack Solution is Implemented

• Sunny Lu proposes suspending Quadratic Voting and Quadratic Funding in VeBetterDAO to address Sybil’s attack issues.

• The temporary removal aims to protect the DAO’s decision-making process and ecosystem integrity.

Sunny Lu, founder and CEO of VeChain, has proposed to temporarily suspend the Quadratic Voting (QV) and Quadratic Funding mechanisms within the VeBetterDAO framework. This move aims to address significant concerns regarding Sybil attacks that have impacted the ecosystem.

Proposal alert! Check it out on #VeBetterDao and join me in building a sustainable future

Vote now: https://t.co/ZjrbmgWxI4

#VeBetterDAO #Vechain

— Sunny LU @VeChain (@sunshinelu24) August 19, 2024

The proposal emphasizes the importance of addressing the Sybil attacks problem, which is still a major concern in DAOs that employ quadratic voting mechanisms. These attacks take advantage of the financial incentives related to QV and jeopardize the soundness of VeBetterDAO’s decision-making and the health of its ecosystem. 

Quadratic Voting is a process of voting where the voters are allowed to cast their votes on the basis of their preference intensity on various issues. Unlike the regular voting system in which a person can only cast one vote per issue, QV allows people to cast multiple votes with the cost of each additional vote increasing. This approach is meant to give a better and fairer reflection of the voters’ choice to lessen the impact of the majority and deliver more equitable results. 

Proposal Aims to Safeguard VeBetterDAO

However, the quadratic voting system is susceptible to Sybil’s attack, and this is not intended. In such attacks, the attackers create many fake identities in order to manipulate the voting process in their favour. The problem is further compounded in the crypto space given the relatively cheap and easy options of creating fake accounts, which is a major concern to any DAO that uses QV mechanisms in its operations. 

Lu’s proposal is to ban quadratic voting and quadratic funding for the time being until Sybil’s attack problem can be fully solved. The objective is to protect VeBetterDAO from these attacks and thus remove the current threat. 

The fact that the new measures will involve a Know Your Customer (KYC) policy rather than the usual anonymous crypto transactions shows just how severe the situation is. Lu has stressed that this measure is very important for the advancement and security of VeBetterDAO. He urges the community to carefully consider the proposal and participate in the voting process to ensure the future stability and effectiveness of the DAO.

VeBetterDAO Takes Proactive Stance on Risk Management

The suspension of Quadratic Voting and Quadratic Funding can have several consequences for the VeBetterDAO ecosystem. On the one hand, it may affect the DAO’s ability to take advantage of QV features, including finer-grained voter opinions and less dominance of the majority.

On the other hand, it is essential to mitigate the risks of Sybil attacks as they threaten the long-term viability and credibility of the system. 

The proposal presents a risk management plan that is proactive within the context of the DAO structure. Through solving the Sybil attack problem, VeBetterDAO intends to improve its governance and prevent the occurrence of such malpractices in future voting situations. 

As previously reported by Crypto News Flash, VeChain recently launched the VeBetterDAO mainnet to enhance governance within the VeChain ecosystem. This launch allows users to trade their B3TR tokens for VOT3 to be able to participate in the first round of voting.