Wonderland Improvement Proposal #5 (WIP#5)
TWA Voting System
In the past days we have witnessed an attack on Wonderland using WIP#4 that occurred using block 10,181,614 as snapshot within the Avalanche network. This hastily written proposal was biased towards the “YES” outcome, most likely manipulated by certain players. Daniele Sestagali himself seems to ignore the likely “NO” outcome of the vote in his tweets, saying that it “is clear from the vote that the community is divided” before the vote ended. (1)
What is clear from the on-chain analysis of the data is that the proposal and subsequent votes were orchestrated to have a certain outcome by a group of whales. Analysing the history and on-chain data of these wallets showed that they bought $wMEMO conveniently right before the proposal to be included in the snapshot. (2)
However, the on-chain analysis proves that the majority of frogs DO NOT agree on the pathway that Daniele has proposed. Instead, it seems the community wants THEIR treasury properly managed and the continuation of the Wonderland DAO. (3)
A new voting system is proposed in order to avoid undisciplined and unexpecting frogs from being rekt and becoming exposed to complex game theory utilised as a weapon by the slick arbitrageur whales to manipulate protocols and entire democracies, including on-chain bribery.
II. Time Weighted Average (TWA) Voting System
A new voting system is proposed to be implemented that gives more voting power to long term holders of $wMEMO instead of short term slick arbitrageurs and whales.
As a DAO a fair voting mechanism should be in the form of a quadratic voting system that uses a time weighted average (TWA) of the days $wMEMO (or MEMO/TIME) were held in the frog’s wallets.
The concept is simple, the longer you held your asset, the more weight your vote gets. A formula where $wMEMO uses f(x) where x represents the factor of the days held. This concept has been worked out by user @0xVonBismarck on twitter. (4) The same concept can also be used to fairly distribute the treasury according to the same principles should a future proposal decide to wind down the treasury, but for now, only the voting mechanism is proposed here.
III. Moving Forward
The purpose of this proposal is to illuminate the path towards what is the best interest of the many frogs. We must focus on the trend and not the volatility. By voting for this proposal, a new voting mechanism will be established.
TLDR: New fair voting system to protect frognation.