Leverage Points in Governance – Where Real Change Happens

If you study governance systems, you know that not all changes move the needle. In these systems, there are leverage points (places where a small shift can lead to big change). We can summarize them in four key categories.

From Parameters to Feedback Loops

First, tweaking parameters. This includes things like adjusting interest rates or updating staking reward rules. While necessary, these tend to be surface-level and don’t address the deeper issues. A more impactful approach is altering feedback loops. For example, adding transparency measures like real-time governance dashboards (which thanks to Dune isn’t hard to implement anymore)!!

Rules and Paradigms

The third leverage point is redesigning rules. As many DAOs drift toward plutocracy (read my previous post The Biggest Lie in Blockchain Governance), one way to push back is by rethinking voting mechanisms, like introducing quadratic voting or reputation-based systems.

Lastly, the highest leverage point is changing the paradigm itself. These are the fundamental shifts in how we think about governance, like moving from centralized leadership to community-driven decision-making.

Conclusion

To wrap it up, if we’re serious about improving governance, we need to stop getting distracted by surface-level fixes. Real reform doesn’t come from tweaking numbers or adding one-off proposals, it comes from making high-leverage changes that shift how the system actually works. That means rethinking the mindset behind governance. Otherwise, we’re just rearranging furniture in a broken house.

Until the next hash, Abed.