Machiavellian Principles: Key to Tackling Decentralized Governance in Web3, says a16z's Miles Jennings
Summary:
Andreessen Horowitz (a16z)'s general counsel and head of decentralization, Miles Jennings, suggests that principles from "The Prince" by Niccolò Machiavelli could help address decentralized governance issues within web3. Jennings recommends limiting autocratic leadership, balancing power among leaders, encouraging turnover within the leadership, and implementing lockup mechanisms for stakeholder councils to increase system accountability. He further advises against relying on non-token based voting systems to combat autocracy in DAOs.
Venture capital company Andreessen Horowitz (a16z) suggests that principles laid out by Niccolò Machiavelli in his politically incendiary book, "The Prince", published half a millennium ago, could be key to resolving issues in decentralized governance of autonomous organizations. This is elucidated in a blog post by Miles Jennings, a16z's general counsel and chief of decentralization, who champions the application of Machiavellian principles to web3 decentralized governance as a remedy to current challenges. Jennings identifies parallels between Machiavelli's realist take on social power struggles and those currently faced by decentralized autonomous organizations (DAOs) and their crypto protocols. Italian political thinker and diplomat Niccolò Machiavelli, known as the modern political theory pioneer, imparts crucial insights about social power in "The Prince", contending that achieving a stable state can warrant ruthless tactics. Jennings taps Machiavelli's writings to navigate the path to averting power monopoly. He opens his discussion with the observation that organizations inherently lean towards tyrannical rule, thus requiring DAOs to regulate governance by assigning many decisions to the client or a third party. Jennings claims that such governance downsizing could significantly reduce the number of decisions to be validated through decentralized governance, relieving the protocol of excessive administrative bureaucracy. He further proposes the principle that DAOs should conscientiously offset power among leadership ranks, making emerging leaders susceptible to unfettered opposition. He advises DAOs to adopt bicameral governance structures akin to the U.S. Congress, consisting of the House of Representatives and the Senate. Non-token based voting systems, such as proof of personhood, Jennings believes, do not aid DAOs in avoiding autocracy. Although proof of personhood could potentially lessen a DAO's susceptibility to attack, it would be ineffective in abolishing autocracy. Jennings' third principle advocates not just persistent opposition for DAOs, but the facilitation of new leaders into the leadership tier through enforced rotation, averting a static power equilibrium. This rotation, according to Machiavellian doctrine, should be pressed for by community members, as those already in power will resist giving up their privileges. Given the fiscal roadblocks in obtaining power through token-based voting systems, community members often find their potential to gain power restricted. In his fourth and final principle, Jennings advises DAOs to implement lockup mechanisms for members participating in stakeholder councils to enhance system accountability, which Machiavelli perceives people at large as incapable of challenging leadership. The key to victory for web3 over web2, according to Jennings, lies in its decentralized nature which encourages freedom, minimizes censorship and fosters opposition to power, thereby propelling progress. He concludes that by rewarding rivalry, empowering competitors, and adopting non-token based voting, DAOs can expedite this cycle.
Published At
9/21/2023 5:30:00 PM
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