Better DAO Decisions & Aligned Incentives: Research on Carroll Mechanisms

Summary

Governance is critical for Scroll’s success. Good governance drives growth and resource allocation, while poor governance leads to ecosystem collapse despite large treasuries. Currently, DAO governance suffers from two critical challenges:

  • Misaligned incentives: DAOs suffer from voter apathy and farming of incentives (GPT delegates). Current manual approaches to rewarding delegates to do better work are biased and conflict-prone.
  • Collective decision making is hard: DAOs suffer from haphazard and biased decision making, and frequent back-channelling limits collective learning and discussion.

Dr. Philip Brown is a recognised leader in mechanism design, having received extensive funding from NSF, NASA, and the Air Force and multiple accolades in this field. The Network Goods Institute, in collaboration with him and RnDAO, we have identified “Carroll Mechanisms” — an evolution of Futarchy and Prediction Markets — as a potential solution for governance systems where participants are incentivised to:

  • share information honestly,
  • evaluate proposals on merit rather than politics,
  • and collaboratively discover solutions without relying on pre-defined choices.

The Scroll Foundation also recognises this direction as promising.

Scroll has an opportunity to implement this cutting edge governance mechanism to improve its performance as a DAO, reward delegates fairly, and build the L2 chain where DAOs go to thrive.

This proposal takes Scroll to the forefront of governance innovation by fast-tracking R&D in Carroll Mechanisms from theory into implementation. Via a 6-month research and implementation program from August 2025 through July 2026. The outcome will be better decision-making in Scroll and fair rewards for delegates.

The program is divided into three milestones. M2 and M3 are conditional on successful M1:

  1. Base research on mechanism feasibility ($45k),
  2. Applied research to identify the ideal mechanism to implement and calibrate the parameters ($45k),
  3. Integration into the Negation Game product so Scroll can immediately benefit from this mechanism to upgrade its governance and delegate rewards system ($55k).

Rather than a traditional grant, we propose an investment structure with shared upside: a $145,000 USD-equivalent SAFE+Token Warrant investment at $12M cap that aligns Scroll’s interests with the project’s success through potential ROI and ecosystem growth.

Motivation

Problem:

In Web3, we’ve seen our share of governance failures. Multiple ecosystems have collapsed despite starting with massive treasuries. Too many died not because of competition but through grifting and self-sabotage.

Good governance leads to good decisions and growth. Bad governance leads to an ecosystem of misallocated resources.

Current DAO governance models suffer from multiple challenges to sustain participation, align incentives, reward governance work, and otherwise make good decisions. For DAOs to survive, improving upon the current delegates’ models is an existential necessity. This is not a problem limited to DAOs, as governments and corporations also suffer from analogous issues, including:

  • Conflicts of interest between management and shareholders
  • Executive compensation misalignment with company performance
  • Groupthink, confirmation bias, authority bias, HIPPO, etc.
  • Limited access to expertise leading to risk management and oversight deficiencies
  • etc.

Designing incentives for good governance is hard. Finding a better model could unlock massive value for all humans.

The current practice in DAOs is to appoint delegates who then vote on behalf of token holders. However, DAO delegate models suffer from their own set of issues and multiple problems of traditional board governance:

  • delegates themselves are seldom kept accountable by token holders,
  • can be apathetic (limited engagement with governance),
  • and often show behaviours (e.g. GPT replies to proposals, always voting in favour to avoid relationship strain, etc.) coming from incentive misalignment.

Current approaches:

Manual approaches to incentivise governance work (i.e. reward delegates) are prone to biases and conflicts of interest as those who determine the incentives are beholden to the delegates they evaluate. Manual allocation of rewards is also prone to conflict due to the inherent subjectivity in the approach.

Rethinking the solution space from the ground up

Voting systems are incredibly popular governance models, whether taking the form of one-person-one-vote, token/share voting, or representative democratic models. However, voting systems have well-known shortcomings, both theoretically (cf. Arrow’s impossibility theoremˇ) as well as practically. Among the most salient shortcomings in the context of delegate-based DAO governance are the problems of:

  • incentive misaligned factions (including all forms of bribery and corruption),

  • whales (large power holders that strangle promising investments),

  • and problems of low voter participation, capacity, and knowledge.

There are alternatives to voting-based governance systems, among them is futarchy. Futarchy is a governance approach that uses prediction markets—such as those found on Polymarket and Metaculus—to guide DAO decision-making based on forecasted metric outcomes. This has been implemented in straightforward cases like Uniswap, where token price provides a clear and mutually accepted success metric. Futarchy offers a more robust and credibly neutral solution, as it incentivises those with valuable information to engage in governance, while aligning incentives towards identifying the correct answer and long-term accrual of value. However, futarchy has severe limitations:

  • Constrains deliberation to predetermined options, preventing groups from discovering novel solutions through collaborative reasoning. The system’s effectiveness depends entirely on how well the initial questions and choices are framed, making it vulnerable to poor problem formulation.
  • Selecting appropriate resolution metrics proves challenging, as chosen measures may inadequately capture true success, become targets for gaming, or suffer from Goodhart’s Law effects where optimization distorts the underlying objective. Many meaningful outcomes are also difficult to quantify or emerge only over extended timeframes.
  • Obscures the reasoning behind decisions, revealing only traders’ final positions without the underlying rationale. This opacity limits knowledge transfer, reduces organizational learning, breeds distrust, and prevents the alignment-building that comes from understanding why decisions were made.

What if we could rethink the use of voting mechanisms altogether? Could we move away from simply voting on predefined options and invent a game that allows participants to deliberate and co-create new solutions?

Solution:

A promising solution is a set of mechanisms we call “Carroll Mechanisms”. Carroll Mechanisms improve upon the limitations of futarchy by helping define the resolution criteria for a market — not just determining what the outcome of a question is, but also how we determine that outcome.

For example:

  • Instead of simply asking “Who will win the next presidential election?”, a Carroll Mechanism clarifies what counts as a legitimate source for declaring the winner (e.g. certified results by a national election commission).
  • Or for a more complex question like “Does vaccine X cause neurological disorders?”, it helps define what we mean by “neurological disorders,” which studies or data are valid, what thresholds of causality apply, and how uncertainty or conflicting evidence should be handled.

Carroll Mechanisms work by building on prediction markets, which already let people bet on whether statements are true or false (like “Who will become president in 2026?”). But Carroll Mechanisms add something new: they let participants challenge whether a piece of information is actually relevant to answering the original question.

The key innovation is that these mechanisms can automatically figure out what information should count as relevant. In simpler terms: instead of just asking “Is this true?” like regular prediction markets, Carroll Mechanisms also ask “Does this even matter for answering our question?” — and they have a smart way to figure out the answer.

Carroll Mechanisms do this through a built-in system that identifies which participants are genuinely neutral and unbiased, as demonstrated by a history of changing their minds, then uses their input to determine what’s actually useful for resolving the question. For more about Carroll Mechanisms, read this post.

This approach could enable governance participants to engage more collaboratively and productively, and be rewarded accordingly. Carroll Mechanism could hold the missing key to solving incentive alignment for DAO governance.

The Scroll Foundation and RnDAO believe this approach is promising to transform DAO governance, scientific funding allocation ($1.2 trillion market), and even has implications for city and nation state governance and the emergence of network states. However, before proceeding with an implementation in Scroll or elsewhere, it’s necessary to gain confidence about the design of the systems and the best parameters for it. The necessary first step is mathematical modelling and computer simulation, then moving to implementation.

We thus propose an initiative to fund the necessary research (over a period of 6 months) and deliver a working product for Scroll to adopt this new governance system.

We have divided the proposal into 3 phases (milestones) so that the full capital is used only if the initial research validates Carroll Mechanisms.

This proposal will enable Scroll to make high-quality decisions and reward delegates fairly, thus positioning Scroll as an industry leader in governance and addressing one of the biggest limitations of DAOs.

Incentive Alignment with Scroll

Governance represents both a fundamental requirement for Scroll’s success and a strategic opportunity to establish credibility by addressing a critical need across the DAO ecosystem. We sweeten this proposition by aligning our incentives more closely: turning the funding for governance also into an ecosystem growth activity.

We achieve this by making the funding not a grant but an investment. This approach thus aligns Scrolls’ needs for better governance and potential ROI from capital deployments.

Execution

Personnel & Resources

The team:

Lead Researcher: Dr Philip N. Brown is an expert in incentive, mechanism, and utility design for network games and will bring this experience to bear on the problem [Singh et al., Collins et al., Brown et al.]. Using concepts from algebraic graph theory and mechanism design, we will specify the relevant incentive constraints (modeling CAP and RE) which govern the feasibility of Carroll mechanisms.

He has been awarded external research funding from t he National Science Foundation, NASA, the Air Force Office of Scientific Research, and the NSA. Philip is interested in the fundamental mathematics of strategic decision-making and applies this to mechanism design for infrastructure systems, decentralized algorithm design for multi-machine systems, and networked societal/autonomous systems. He’s an Associate Professor in the Department of Computer Science at the University of Colorado Colorado Springs. Dr. Brown received the 2018 CCDC Best PhD Thesis Award from UCSB, the Best Paper Award from GameNets 2021, a 2023 AFOSR Young Investigator Program award, and a 2025 NSF CAREER award. He is also a longtime observer of the world of blockchains and DAOs.

Second researcher: Connor McCormick is the founder of the Network Goods Institute. Prior founder of a machine learning computer vision hardware startup, founding team member at Digital Gaia, a climate intelligence company where he contributed to novel economic primitives and Bayesian machine learning systems for climate impacts, and contributor to the development of collective intelligence protocols at Metaculus. You can find Connor’s writing here and here.

Engineering Lead: Kaden Bilyeu is the engineering lead for the Negation Game, the product suite into which a successful design of Carroll Mechanisms will be integrated. Kaden is the creator of EasyTL an AI based translation tool, he has made over 3.2k commits on GitHub in 2025 so far, examples of his work can be found here.

Project advisor: Daniel Ospina is an instigator at RnDAO. Organisation designer and 3x founder (1 exit), ex-Head of Governance at Aragon and ex-supervisory council SingularityNET. Daniel trained BCG consultants on system design and innovation methodology, was a visiting lecturer at Oxford University on innovation and systems design, and a Harvard Business Review author.

Project advisor: Andrea Gallagher is the research lead at RnDAO. Drea has been building and supporting startups since Web 1. Strategic researcher for products such as Google Workspace ($16bn revenue) and Asana ($183mn revenue), and in Web3 at Aragon. Drea honed her skills in the Innovation Catalyst unit at Intuit (TurboTax and Quickbooks, $14bn revenue).

Operational

The work is divided into two milestones.

The timeline of this project is driven by Dr. Brown’s availability from mid-August 2025 through mid-May 2026, with the greatest availability from August through December. Accordingly, we anticipate that the bulk of the Milestone 1 work will occur between mid-August and mid-December of 2025, and we will prepare a Milestone-1-focused publication in January/February 2026. We propose the following milestone dates for Milestone 1 (base period M1):

  • August 18, 2025: Official project kickoff.
  • September 30, 2025: Complete mathematical model posed.
  • December 15, 2025: Feasibility questions for Carroll mechanisms settled.
  • Mid-February, 2026: Milestone 1 results submitted for publication to ACM EC.

The Milestone 2 work (option period) will occur over Spring and Summer 2026, with a lower intensity of activity due to Dr. Brown’s existing obligations:

  • January 1, 2026: Milestone 2 kickoff.
  • February 28, 2026: Key metrics identified.
  • May 31, 2026: Pareto-optimal Carroll mechanisms identified.
  • Mid-summer 2026: Milestone 2 results submitted for publication.

Research progress will be summarized on a monthly basis in a public Coda doc found here: Login - Coda

Financial

The team is committed to delivering this research and product for $145,000 USD equivalent.

Costs are divided as per our two milestones $45k (M1: Base) to prove feasibility + $45k (M2: Option) to find the best design + $55k (M3: Option) to integrate it into the Negation Game product and deploy it to the DAO.

Andrea and Daniel will not receive a fee for their engagement on the project.

M2 will only happen if M1 is positive. If not, the remaining funds will be returned to the DAO’s budget.

Budget breakdown:

We break the research budget into a $45,000 base period plus a $45,000 option period, with a $55,000 implementation budget for integrating the resulting mechanism set into the existing Negation Game product and deploy and roll out to Scroll DAO. The base period will center on Research Thrust 1, and the option period will center on Research Thrust 2 plus additional prototype development. If the project is funded at only the base level, we anticipate one significant academic publication; the option period would result in at least one additional publication, with potential for more as resources allow.

Milestone 1 (base research): total $45,000

  • Dr. Philip Brown Research time: Total $36,500 for research time, averaging 12 hours/week for 17 weeks from August 18, 2025 through December 15, 2025 (this amount is inclusive of publication preparation time in January, 2026). The average hourly compensation for Dr. Brown’s time is $178 per hour, coming in competitive with other effective hourly rates for game theory and mechanism design research which range from $75-120/hour in academia and $500-1,500/hour for senior consulting work in industry (deepresearch source). Dr. Brown will operate as an independent researcher on M1, studying the feasibility of Carroll mechanisms, reviewing relevant literature, formulating formal conjectures, conducting numerical experiments to verify conjectures, developing mathematical proofs of relevant propositions, preparing results for publication, and presenting results at scientific conferences.
  • Network Goods Institute: total $8,500. The Network Goods Institute team will collaborate on research progress with Dr. Philip Brown, including conducting bi-weekly program calls for 17 weeks and evaluating the research progress, once every two weeks (8 total) this will be an open call for anyone to attend so that the community and outsiders can have visibility into the innovative research work that is happening at Scroll DAO. In this supporting capacity, the team will offer feedback on methodological approaches, contribute to discussions about research directions, and suggest technical solutions when appropriate. They will identify potential concerns that might affect the research timeline and provide relevant market and user experience insights, drawing from the learnings from bringing the existing product to market, to complement Dr. Brown’s expertise and help ensure the research achieves its intended impact and is useful for practical applications.

Milestone 2 (applied research): total $45,000

  • Dr. Philip Brown: Total $28,500 for research time, averaging 6 hours/week for 26 weeks from January 2026 through July 2026. Dr. Brown will conduct research as described in Thrust 2 on determining the set of Pareto-optimal Carroll mechanisms, reviewing relevant literature, formulating formal conjectures, conducting numerical experiments to verify conjectures, developing mathematical proofs of relevant propositions, preparing results for publication, and presenting results at scientific conferences.

  • Network Goods Institute: total $16,500. The Network Goods Institute team will collaborate on research progress with Dr. Brown as in the base period, as well as contributing to numerical evaluation of mechanisms with cadCAD, and prototyping the resultant mechanisms for the purposes of testing their real world usability and dynamics to add richness to the resultant research findings.

Milestone 3 (implementation, running in parallel to M2): total $55,000

  • The Network Goods Institute team: Total $55,000 for integration and deployment work over 26 weeks running parallel to the M2 period (January 2026 through July 2026). The team will begin implementing the initial Carroll mechanisms identified in M1 immediately upon completion of the M1 period (December 2025), with iterative updates as additional optimal mechanisms are developed during M2. Implementation effort will ramp up significantly in the final months as M2 research conclusions are finalized, ensuring complete integration and deployment by the conclusion of the M2 period.
  • Simulation and evaluation: a paid mechanism beta evaluation process will be put into place, getting feedback from DAO governance participants on the familiarity and usability of the user interface, $5,000.

Implementation timeline and effort allocation:

  • January-March 2026: 6-8 hours/week - Initial integration of M1 findings, foundational development
  • April-May 2026: 8-10 hours/week - Iterative updates as M2 research progresses
  • June-July 2026: 12-15 hours/week - Intensive final integration, testing, and deployment as M2 research concludes

Complete Project Budget Breakdown

Complete Project Budget Breakdown

Period Duration Total Cost Dr. Philip Brown Network Goods Institute
Base research (M1) Aug 18, 2025 - Dec 15, 2025 $45,000 $36,500 $8,500
Applied research (M2) Jan 2026 - Jul 2026 $45,000 $28,500 $16,500
Implementation (M3) Jan 2026 - Jul 2026 $55,000 $0 $55,000
TOTAL $145,000 $65,000 $80,000

Dr. Philip Brown - Activity & Cost Breakdown

Base Period (M1) - $36,500

Activity Duration Cost
Literature Review & Foundation 4 weeks $8,588
Property Definition & Research Framework 4 weeks $8,588
Mathematical Modeling & Compositional Development 5 weeks $10,735
Iterative Numerical & Theo retical Experimentation 13 weeks (overlapping) $8,589
M1 Total 17 weeks $36,500

Literature Review & Foundation (Weeks 1-4)

  • Review of mechanism design theory relevant to Carroll mechanisms
  • Analysis of proper scoring rules and prediction market literature
  • Survey of reentrancy attack prevention mechanisms
  • Review of information cascade and bounty system research
  • Analysis of Schelling point theory and coordination mechanisms

Property Definition & Research Framework (Weeks 5-8)

  • Formal definition of targeted Carroll mechanism properties:
    • Proper scoring incentives for market participants
    • Reentrancy attack prevention mechanisms
    • Confidence cascade promotion structures
    • Information bounty allocation systems
    • Early identification advantage mechanisms
    • Stable Schelling points around high falsifiability
    • Non-plutocratic and integrity-based incentive structures
  • Establishment of compositional mechanism design framework for iterative development

Mathematical Modeling & Compositional Development (Weeks 9-13)

  • Development of simple foundational models using constructive proof methodology
  • Iterative model refinement through pose-refute-refine cycles
  • Modular mechanism design approach: proving properties of simple components
  • Compositional assembly of verified components into more complex mechanisms
  • Incremental formalization of Carroll mechanism properties

Iterative Numerical Experimentation (Weeks 5-17)

  • Continuous numerical validation throughout model development
  • Simulation-driven exploration of mechanism variants
  • Computational verification of theoretical properties for simple components
  • Empirical testing of composed mechanism behaviors
  • Iterative refinement based on experimental feedback

Applied research (M2) - $28,500

Activity Duration Cost
Advanced Mechanism Design 8 weeks $8,769
Mechanism Refinement and Numerical Optimizations 8 weeks $8,769
Prototype Development 6 weeks $6,577
Research Synthesis & Documentation 4 weeks $4,385
M2 Total 26 weeks $28,500

Advanced Mechanism Design (Weeks 1-8)

  • Research on Pareto-optimal Carroll mechanism variants
  • Comparative analysis of different mechanism configurations
  • Optimization of mechanism parameters
  • Trade-off analysis between efficiency and fairness

Theoretical Refinement (Weeks 9-16)

  • Development of formal proofs for key propositions
  • Mathematical characterization of optimal mechanisms
  • Analysis of equilibrium properties
  • Robustness and stability analysis

Prototype Development (Weeks 17-22)

  • Design of mechanism prototypes for testing
  • Integration planning with existing DAO systems
  • User experience considerations
  • Technical specification development

Research Synthesis & Documentation (Weeks 23-26)

  • Consolidation of research findings
  • Preparation of technical documentation for DAO
  • Publication preparation ($1,500 allocated)
  • Knowledge transfer materials for implementation team

Network Goods Institute - Activity & Cost Breakdown

Base research (M1) - $8,500

Activity Duration Cost
Bi-weekly Research Collaboration Calls 17 weeks $5,100
Research Progress Evaluation & Feedback 17 weeks $2,550
Market & UX Insights Integration 17 weeks $850
M1 Total 17 weeks $8,500

Applied research (M2) - $16,500

Activity Duration Cost
Bi-weekly Research Collaboration Calls 26 weeks $7,800
Research Progress Evaluation & Feedback 26 weeks $3,900
Mechanism Prototyping & Testing 26 weeks $4,800
M2 Total 26 weeks $16,500

Implementation (M3) - $55,000

Activity Duration Cost
Initial Integration (M1 findings) 3 months (6-8 hrs/week) $16,500
Iterative Updates (M2 progress) 2 months (8-10 hrs/week) $13,750
Incentives for mechanism beta testers 2 month (5-7 hours / week) $5,000
Final Integration & Deployment 2 months (12-15 hrs/week) $24,750
M3 Total 26 weeks $55,000

Key Deliverables:

  • Technical integration of Carroll mechanisms into existing codebase
  • User interface updates and UX optimization for new mechanisms
  • Comprehensive testing suite including governance reward simulations
  • Documentation and user guides for DAO members
  • Beta testing program with select user groups
  • Final production deployment to DAO infrastructure
  • Post-launch monitoring and analytics dashboard

Notes

  • Publication budget of $1,500 allocated from M2
  • All amounts inclusive of independent researcher overhead

A note on valuation: we were offered a $24mn valuation by a VC (BlueYard) with a $1.2mn investment.

BlueYard found the project promising due to the extremely large market opportunity that Carroll Mechanisms present if successful — namely that they address a class of capital allocation whose TAM (total addressable market) includes both venture funding ($500b annual market size) and scientific funding ($1.2t annual market size), coupled with the plausibility of adoption of this mechanism set due to its user story similarity to successful crypto properties like MetaDAO, Polymarket, and pump.fun.

BlueYard also found an investment in the Network Goods Institute attractive due to Index Wallets, a payment mechanism with public goods funding properties, which are beyond the scope of this proposal but also an asset held by the company funded by this proposal.

We’re offering a very attractive $12mn valuation to Scroll because we believe Scroll to be a more aligned funder with our dual goals of delivering a financially viable product while also transforming governance for the better. You can read about our decision to decline (at least for now) the BlueYard funding here. TLDR: we want the alignment to do this right, even if that means taking a slightly longer route.

Evaluation

We request that the Scroll Governance team evaluate the successful completion of the deliverables of this proposal. Below are further details for accountability.

What change do we want to see in the world?

We want to create governance systems where participants are incentivized to contribute valuable information and evaluate proposals based on merit rather than politics, leading to better collective decisions in DAOs, scientific funding, and other institutional contexts.

How will we know that change has occurred?

Milestone 1: Mathematical proofs demonstrate that Carroll Mechanisms achieve incentive compatibility and information efficiency under realistic conditions, with formal analysis showing theoretical advantages (and potential vulnerabilities) over current voting and futarchy systems.

Milestone 2: Complete theoretical framework with optimal design parameters and proven mathematical properties that provide clear specifications for practical implementation.

Milestone 3: Implementation into the Negation Game with user-friendly UI, user test and positive evaluation from users. Desire to use the Negation Game in Scroll for proposal evaluation and rewarding delegates.

Success Metrics

Mathematical Properties:

  • Formal proof of incentive compatibility (honest participation is the Nash equilibrium)
  • Theoretical demonstration of superior information aggregation compared to existing systems
  • Mathematical analysis of robustness against strategic manipulation

Academic Validation Test:

  • Research suitable for peer-reviewed publication in mechanism design or governance journals
  • Validation by independent experts in game theory and mechanism design
  • Clear implementation pathway with mathematically-grounded parameter recommendations

Practical Readiness:

  • Theoretical framework complete enough to guide system development
  • Formal specifications that translate abstract mechanisms into implementable designs
  • Positive assessment from governance practitioners and potential adopters

Marketing and Community Impact:

  • Successful usability test with delegates and foundation. Subjective feedback showcases: i) The mechanism is usable within the Negation Game. ii) It creates tangible value (better info, clearer merit evaluation). iii) It positively influences delegate behavior and perception of reward fairness/alignment.
  • Education campaign for delegates and for the broader community.
  • Usage of the NegationGame in Scroll for proposal evaluation and delegate rewards.

Conclusion

This proposal enables Scroll DAO to pioneer the next generation of governance systems while generating potential returns on investment. The implementation addresses fundamental challenges of DAO governance that also limit Scroll’s DAO — from delegate accountability and incentive misalignment to the limitations of voting-based systems and futarchy.

Why This Matters for Scroll:

The current delegate model suffers from apathy, conflicts of interest, and subjective reward allocation. Manual approaches to governance incentives are inherently biased, while AI-based alternatives face critical limitations in data availability and learning capabilities. Carroll Mechanisms offer a third path - enabling human-AI collaboration in governance, and aligning incentives without replacing human judgment.

Strategic Value:

By funding this research, Scroll gains: better governance, positioning as a governance innovation leader, potential ROI through the investment structure, and transaction fees from resulting governance tooling. The research addresses a greater than $1.2 trillion market opportunity spanning DAO governance, scientific funding allocation, and broader institutional decision-making.

Execution Excellence:

The team combines world-class academic expertise (Dr. Brown’s recognized leadership in mechanism design with NSF CAREER and AFOSR awards) with practical implementation experience (Connor McCormick’s work on collective intelligence protocols, Kaden Bilyeu’s engineering leadership). The phased approach allows for early validation before full adoption, with rigorous academic publication standards ensuring quality.

Expected Impact:

Success will create a governance system where participants are incentivized to contribute valuable information and evaluate proposals based on merit rather than politics. Delegates get fair rewards and Scroll DAO gets thorough decisions.

5 Likes

I endorse this proposal. Looking forward to seeing the impact of Carroll Mechanisms and how they can potentially align incentives and the further work this proposal endeavors to go into.

1 Like

I have already gotten some DMs to just want to confirm publicly:

  • The gov team has given 2 grants to the Negation Game team, the second of which is active
  • We are very excited by Negation Game and see it as having potential high impact in improving governance from a tooling perspective
  • We directionally support this proposal but have honestly not had the time to do a proper review of the terms yet. That having been said, if the DAO feels this is solid and ready to move forward with this, we will endorse to not delay. Otherwise, we will review and provide feedback as soon as we can

I want to flag to @connormcmk, unless enough endorsements come in today/by the start of next week, this is likely to be part of the Sept 1 voting cycle. Just want to set realistic expectations, albeit I see Tony already endorsed so you need 2 more + Foundation to proceed to formal onchain vote.

Would be keen to hear thoughts from @kevinknielsen, @EventHorizon, @Kene_StableLab and any one else with experience of financing deals for governance tooling

1 Like

Thanks Eugene,

For context, what we accomplished so far with these grants is everything you see in scroll.negationgame.com, including:

  1. The graph building interface to build and publish rationales
  2. AI tools to assist in creating those graphs
  3. AI tools to summarize those graphs as annotated essays
  4. Implementation of the endorsement system (with buy, sell, and leverage)
  5. Notifications
  6. Direct messaging (to be used in the consilience features)
  7. Onboarding flow
  8. Topics to track important open proposals
  9. Profile with delegation call to action and leaderboards
  10. Everything with light and dark mode :face_with_tongue:

We’ve been very active in our github, you can review the full project here

And with the subsequent grant we will deliver:

  1. Comparison and consilience between positions (the ability to compare two rationales between two players and then take them through a guided information gathering process)
  2. New proposal generation based on overlapping values of delegates
  3. Integration with discourse
  4. Further integration of AI to ease the rationale creation process
  5. Delegate pairing to facilitate delegate connectivity / live chats
  6. Discussion features and notification system to enable self-invalidation based influence
1 Like

For what it’s worth, it’s actually fairly time sensitive that this proposal be included in this voting cycle, as it will enable Dr. Philip Brown (the primary researcher and mathematician on the project) to make use of his sabbatical.

We would have had the published the proposal sooner but we details of the proposal to get right first before we could go live, so we have a bit shorter timeframe

Here’s a rationale template for you to use:

I fully endorse this proposal. That being said, RnDAO is also affiliated with Negation Game. We carried VERY extensive due diligence before agreeing to support the project, including mapping 40+ governance tools in the space, looked into multiple emerging methodologies to see their potential impact, and had 6+ calls/meetings with Connor. As a result of this, we see world-changing potential in the work being carried and decided to support them. The technology is still early and as such there are significant uncertainties and a need for R&D. This proposal aligns the incentives of Scroll and the Negation Game team to advance this R&D together and deliver a working solution, for everyone to benefit.

We reviewed the proposal before publication and suggested adaptations to ensure proper risk management AND value delivery. As a result, the milestones break down the costs into small amounts and each milestone completed reduces the risk of the project significantly while they all aggregate to provide Scroll with very tangible value: an implemented, improved governance system that rewards delegates for doing quality work.

1 Like

I am in support of this proposal. Strengthening the quality of governance decision-making through structured rationales, and incentive alignment, is a worthy exploration imo. With Carroll mechanisms we can try to reduce noise and improving signal in governance processes.

The team has demonstrated strong progress through previous grants already offering a valuable infrastructure, and the outlined roadmap building on this momentum with clearly scoped, milestone-based development.

That said, we should remain diligent in tracking outcomes and usability across real DAO decisions. I look forward to the first outcomes!

1 Like

As a verified delegate I endorse this proposal to pass to vote due to the team behind (trust on their capabilities and track record).

However, I want to leave some comments:

  • Proposals should stay at least a week in discussion mode at the forum. Having a rush to read all comments, review the info, find improvements and endorse or not the proposal in under 5 days it is not optimal. I feel rushed to support the team behind due to the current timing. Certainly, if time would be available the collective intelligence of this DAO could improve the proposal before it goes out. Pointing this out has the goal that we enforce a week of discussion before Delegates can even endorse a proposal.
  • The cost per hour of the researcher seems to me expensive. The price is above the academic range shared, which is the type of work being done.
  • Is the goal of this product to be funded by the DAO or the Foundation? (The 12M$?) or what is the plan there? How will the revenue sharing work when this becomes a product?
2 Likes

I endorse this proposal.

The work that Connor and the Negation Game team is doing in Governance innovation should be commended and supported. Personally, I am looking forward to seeing a futarchy iteration in research and practise. We

I think the proposed investment structure is also really interesting. Is the token warrant and SAFE held by the DAO or the Foundation? I’ll assume the Foundation would hold the SAFE, if so, how does that work in practise vis a vie the DAO? I assume the token warrant could be held by the DAO treasury?

Well done team, I’m looking forward to watching this progress.

Thanks for the proposal. It’s definitely an interesting research agenda and the team looks very experienced.

The framing as an investment proposal is a new approach to me. Echoing @Matt_FactoryLabs, could you clarify which entity would give and receive the investment? The DAO is not a vehicle for that, I imagine.
The 12mio valuation point for negation game, I feel like I would need more info to evaluate that properly.

Also, the deliverable in the third phase, after the research, will be an addition to negation game, not a separate product? Is this something exclusive to Scroll, then?

I would generally love to see Scroll going forward with research initiatives, also with rather experimental ones like this. Though, to fully understand the concept, I could use a presentation in the community call or something like that, even if you’re already going for voting. As @HumbertoBesso points out, going for a decision now feels a bit early.

Thank you for the proposal, we’ve had a close look and had a few internal conversations about it too.

We are totally aligned with making smarter decisions and aligning better. Carroll Mechanisms are an exciting direction, and we’re really glad to see Scroll exploring this space seriously.

When we first read through the proposal, we were a bit unsure about the size of the research budget. It looked like a big share (around a third) was dedicated to theory and foundational work before any real-world testing begins. Our initial thought was: hasn’t a lot of this already been explored in theory?

But after talking to you and digging deeper, especially after better understanding Dr. Brown’s involvement and how his research will help define the design space more precisely, that concern is mostly resolved. We’d suggest maybe highlighting Dr. Brown’s expertise around Carrol Mechanisms more clearly in the proposal itself, since it wasn’t immediately obvious just how central his role and prior work are to this effort.

From our side, we usually think in fast iteration cycles and practical feedback loops (blame our Design Thinking background for some of our team members :grinning_face_with_smiling_eyes:), so our instinct is always to push toward real-world validation sooner. That said, we also recognize that mechanism design is a special case where some longer upfront modeling and a different methodology can actually save you from a lot of costly missteps later on.

Also seeing it as an investment that can be leveraged by the DAO (to be clarified, as pointed out by @bitblondy) is interesting and can make a huge difference here.

So all in all: we’re aligned with the direction, we appreciate the rigor behind the proposal, and we support moving forward with this. If anything, we’d still encourage breaking down the research phase into smaller checkpoints, tightening the budget wherever possible and giving the DAO moments to reassess, adapt, and stay grounded in feasibility as things unfold.

We endorse this proposal and with these few points to consider, hope to see it going forward to a vote.

1 Like

As a verified delegate, I endorse this proposal. I do like that it explores not just what the outcome is, but how the outcome comes about. Especially considering the recent issue with Polymarket and the Zelenskyy suit.

Also I think we should explore new ways of governance and not just be comfortable with the current state of governance.

1 Like

Thank you for this proposal, @connormcmk , there is a lot of details and work that has been put into this proposal and I really appreciate this work.

I also totally understand the reasoning and need to try to meet this voting cycle, however, I have to agree with @HumbertoBesso in that it does feel rushed. As I want to fully understand and provide thoughtful feedback before I can endorse or vote in favor for, if it does go forward into the August voting cycle.

1 Like

I’d like to endorse this proposal. Thorough research on governance tooling is essential, and after discussing Negation Game and their current proposal extensively with Connor, I am confident that this team is qualified to undertake this task. I also like that this is structured as an investment from Scroll and not just a grant. This structure allows for better alignment and secures an upside in the event of future success. The valuation and specific deal terms are somewhat unclear to me, but I’d rather leave those negotiations to the Scroll Foundation and the team. One thing I’d like to point out is that we need to ensure we get the most value possible from this investment. The Foundation should plan how to communicate this to the world and present the investment as Scroll’s positioning on the frontier of governance innovation.

One thing that I’d like to point out is that we need to make sure to get as much value from this investment as possible. Foundation should plan on how to communicate this to the world and use it to present this investment as posititioning of Scroll on the frontier of governance innovation.

3 Likes

This is a great direction for governance R&D. Tackling the core issue of incentive alignment is not just beneficial for Scroll, but for the entire ecosystem. @connormcmk just wanted to clarify what do you see as the biggest challenge currently to encourage initial adoption and participation?

Thank yout @connormcmk for this well-structured proposal and the clarity in presenting the model.

We recognize that the initiative can be a big transformative potential for Scroll DAO governance. The proposed mechanisms can help reduce delegate fatigue, mitigate risks, and better align incentives among participants,the quality of DAO deliberations.

From our perspective, this research represents a strategic opportunity to position Scroll as a leading reference in decentralized governance innovation. We recommend involving active delegates and local communities, from the beginning to test the model in diverse contexts.

One question we would like to raise concerns the hourly rate proposed, which appears to be higher than typical academic research benchmarks, could you provide further context or justification for this rate?

Additionally, we suggest the proposal clarify the criteria for measuring success during the experimentation phase, and explore how this model could integrate with existing tools used by the Scroll DAO, ensuring practical adoption post-research.

I am endorsing this proposal.

I have had multiple conversations with @connormcmk to date and each time I find the discussions insightful and him to be a visionary in how he thinks about applying novel solutions to common problems related to coordination and incentives.

I’m excited to see this move forward and look forward to working with him and the wider Scroll community on how the vision can turn into practical execution.