Conviction Voting is a decision-making mechanism utilized by decentralized autonomous organizations (DAOs) to allocate resources based on the strength of individual preferences. It operates by providing DAO members with voting power that increases over time as they demonstrate a higher level of commitment and conviction to a particular proposal. Members can use their power to vote on proposals and allocate resources according to their preferences.
Conviction Voting is designed to incentivize members to make well-informed decisions rather than casting votes based on personal biases or interests. The more voting power a member puts behind a proposal, the more they stand to gain or lose if the proposal succeeds or fails.
In practice, members of the DAO are given an initial allocation of voting power, which they can use to vote on a proposal immediately or hold onto until they are more confident in their decision. As time passes, the voting power of each member increases depending on how long they retain their voting power without casting a vote. This rewards members who carefully consider their options and only vote when they are confident in their decision.
Once the voting period has ended, the proposal is either accepted or rejected based on the total amount of voting power that was cast in favor of the proposal. If the proposal is accepted, the requested funding or resources are allocated accordingly.
Overall, Conviction Voting is a powerful mechanism for DAOs because it promotes informed decision-making and better allocation of resources. Its goal is to establish a more effective and efficient DAO.
Read more about this subject here: Voting mechanism models for DAOs