This topic is wished to create a different direction for change on current low involvement in Opengov, leading to unsatisfied consequence. Open to discuss and spread over X and any platforms.

Proposal: Empowering the Community: A Revolutionary Approach to Staking Rewards and Governance Participation

Introduction

The governance structure of Polkadot's Opengov has increasingly come under the influence of a small group of whale investors, leading to substantial cash-outs from the treasury and a concerningly low voting rate. This situation necessitates a comprehensive solution to enhance participation and ensure that governance reflects the interests of the broader community. This proposal outlines a plan to link staking rewards directly to individual voting engagement and introduces a sustainable and effective grading system for DOT holders.

Proposed Solution

To address the challenges facing Opengov, we propose a framework that incentivizes active participation among DOT holders by linking their staking rewards to their voting engagement. This initiative aims to cultivate a more equitable governance model and increase overall community involvement.

Mechanism Overview

Staking Rewards: The ideal staking reward is set at 16.5%. Each DOT holder will have an individual engagement score based on their voting frequency and overall participation in Opengov.
Engagement Requirements:
To maintain the ideal staking rewards (16.5%), holders must actively participate in Opengov, including voting and discussions, as outlined in the grading criteria.
Holders can recover their engagement score and increase their staking rewards by participating in votes and contributing to discussions.

Proposed Sustainable Grading System for DOT Holders

Grading Categories and Criteria

Grade A: Active Contributors

Criteria:
- Engage in governance votes at least twice a month.
- Actively participate in discussions or propose initiatives at least once a month.
- Support a minimum of three proposals per quarter.
Rewards: 100% staking rewards + bonus rewards from inactive voters' pools.

Grade B: Regular Voters

Criteria:
- Engage in governance votes at least once a month.
- Participate in discussions or propose initiatives at least once every two months.
- Support a minimum of two proposals per quarter.
Rewards: 90% staking rewards.

Grade C: Occasional Voters

Criteria:
- Engage in governance votes at least once every two months.
- Participate in discussions or propose initiatives at least once every three months.
- Support at least one proposal per quarter.
Rewards: 80% staking rewards.

Grade D: Infrequent Voters

Criteria:
- Engage in governance votes at least once every three months.
- No requirement for discussion participation or proposal support.
Rewards: 70% staking rewards.

Grade E: Passive Holders

Criteria:
- No votes or engagement in governance discussions for over three months.
Rewards: 50% staking rewards.

Additional Features for Sustainability

Engagement Metrics:

Voting Participation: Weight votes based on the significance of the proposals, encouraging involvement in high-impact decisions.
Discussion Contributions: Reward holders for participating in governance discussions, contributing to proposals, or providing feedback.

Feedback Loop:

Implement an annual review of the grading criteria based on community feedback and participation rates to ensure the system remains effective.

Dynamic Adjustments:

Periodically adjust grading criteria based on overall participation trends and community needs, ensuring flexibility to encourage engagement.

Social Incentives:

Introduce social recognition for high-graded participants, such as badges or public acknowledgments within the community, fostering a sense of achievement.

Delegation and Support:

Enable holders to delegate their voting rights while still maintaining their engagement score based on participation.

Expected Benefits

Increased Participation: By linking rewards to voting engagement, DOT stakers will be incentivized to actively participate in Opengov, leading to better governance outcomes.
Enhanced Governance: The proposed mechanism will discourage exploitative behavior and promote fair participation, ensuring that treasury resources are protected.
Higher On-Chain Activity: A significant increase in daily, weekly, and monthly active addresses is anticipated, resulting in a surge in on-chain transactions due to increased voting activity.
Encouragement of Ecosystem Proposals: Active voters will be more likely to propose and support initiatives that benefit the Polkadot ecosystem.
Greater Fairness and Inclusiveness: This approach fosters a more democratic governance process, where every vote counts and is rewarded appropriately.

Alignment with Governance Principles

The proposed plan aligns with the core principles of Polkadot's governance:

Initiative: Encourages proactive voting behavior.
Fairness: Ensures equitable treatment of all DOT holders.
Inclusiveness: Engages a wider range of participants in the governance process.
Democracy: Strengthens the democratic nature of decision-making.
Consensus: Facilitates a more robust consensus through increased participation.

Implementation Considerations

Reward Structure: The proposed changes will not adversely affect the overall inflation of the DOT token, as rewards are redistributed among active participants.
Delegation of Votes: Holders may delegate their voting rights to trusted representatives, ensuring that their voices are still heard even if they cannot participate directly.
Strict Voting Policy: Adherence to a strict one DOT, one vote policy will be maintained to ensure fairness and transparency.

Conclusion

The proposed link between staking rewards and voting engagement represents a significant step forward in enhancing Polkadot's Opengov governance model. By fostering a culture of active participation through a sustainable grading system, we can create a more vibrant, fair, and effective governance process that truly reflects the interests of the Polkadot community. I urge stakeholders to consider this proposal and collaborate to implement these changes for the betterment of our ecosystem.

It is for sure that way to grade a stakers and the relevant rewards should be strictly discussed over Polkadot community.