Editing DAO (section)

=== Weighted Democracy ===
A weighted democracy is a [[governance]] structure where the power to decide the protocols for the DAO is determined by vote (democracy), but the power of each person’s vote may be different (weighted). 

Democracy of some type is necessary to achieve decentralized organization because inasmuch as control is not distributed amongst the members widely, then the group is less decentralized. Decentralization can be more effective than centralization, when effectively utilized, for three main reasons: 1. power is given to the most appropriate servant, 2. information at the edge is revealed, 3. the processing power of the entire group is utilized ([[wikipedia:Linus's_law|with enough eyes, every problem is shallow]]).

The weighting of the democracy is necessary in an open pseudonymous group, because it eliminates the threat of sock puppet attacks: 100 sock puppet accounts voting with 1 weight each have the same power as a single account voting with 100 weight, since both situations have the same total.

How is this weight of power determined? In most of the original functioning DAOs, power is dictated by ownership of the currency token. In that case plutocracy is the ''de facto'' governmental structure. Little reflection is needed before most new DAO architects reject this design. Instead the common solution is to build their DAOs on reputation.