Delegation isn't just voting power but a responsibility
DAOs need engaged participants to evaluate proposals and maintain continuity, not passive tokenholders
But it only works when delegates show up consistently
Lessons from @compoundfinance's governance model ↓
What happens when participation drops?
Compound DAO in early 2024:
‣ Voter turnout fell from 28% to 20%
‣ Top delegates participated in fewer than half of proposals
‣ Solution: reallocate 300k COMP ($13m) to active delegates through the Delegate Race program
Did it work?
By October, participation rebounded above 28%
Proposal success rate hit 100% vs 92% before
Result: structured delegation programs deliver results when designed with accountability
Active delegation is what keeps DAOs legitimate
At Wintermute, we've participated in 1,800+ governance decisions
We voted against the recall proposal with 137.5k COMP and mobilized other delegates to defend effective delegation
Governance isn't a privilege but an obligation to show up and participate constructively
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