In the fast-paced world of blockchain and decentralized autonomous organizations (DAOs), governance models are constantly evolving to make better decisions. A recent tweet from Takisoul (@Milimalism) sheds light on a unique aspect of Sowellian governance that's flying under the radar for many. Let's break it down in simple terms and see why it could be a game-changer, especially for meme token communities on Solana.
The Tweet That Sparked the Discussion
Takisoul, a Solana power user and core contributor to projects like Realms DAOs and IslandDAO, posted:
One of my favorite parts of Sowellian governance (which I suspect not many ppl are grasping):
Sowellian ≠ a typical DAO token vote for y/n
If after the evaluation the outcome is not +ev then the proposal will fail (even if it seems passed)
You can check out the original tweet here.
At first glance, this might seem like jargon, but it's highlighting a key difference in how decisions are made in Sowellian systems compared to standard DAOs.
What Is a Typical DAO Vote?
In most DAOs, governance boils down to token holders voting yes or no on proposals. Think of it like a digital shareholders' meeting: if more tokens vote yes, the proposal passes, and the DAO executes it. This is straightforward but can lead to poor decisions if voters aren't fully informed or if the proposal looks good on paper but flops in reality. For meme tokens, where communities are often hype-driven, this can mean wasting resources on ideas that don't pan out.
Enter Sowellian Governance: Governance by Insight
Sowellian governance flips the script. Named possibly after economist Thomas Sowell (though that's speculative), it's described as "governance by insight." Participants don't just vote—they bet on outcomes using the DAO's token, like $ISLAND in IslandDAO's case. It's part of a modular approach to governance, sitting alongside token voting and futarchy (decision-making via prediction markets).
Here's the twist Takisoul points out: Even if a proposal gets enough yes votes (or bets), it undergoes an evaluation afterward. If the outcome isn't "+EV" (positive expected value, meaning it doesn't create net positive results for the DAO), the proposal fails anyway. This built-in reality check ensures decisions align with the community's shared values and actually deliver value.
For example, in a recent IslandDAO proposal, members bet $ISLAND tokens on whether selling merch at a Solana store would be profitable. Winners get rewarded, and there's even a raffle for an IslandDAO NFT. This incentivizes smart betting and ties governance to real-world results.
Why This Matters for Meme Tokens
Meme tokens on Solana, like $ISLAND (which you can track on CoinGecko), thrive on community energy but often struggle with sustainable governance. Sowellian helps by rewarding accurate predictions, turning governance into a skill-based game where insightful participants gain influence and rewards. It's like combining the fun of memes with the smarts of markets.
Takisoul has shared more insights, noting that Sowellian complements other models:
- Token voting: Decisions based on stake.
- Futarchy: Markets predict the best policy for measurable outcomes.
- Sowellian: Earn by predicting actions that advance shared values.
This modular setup avoids "one-size-fits-all" pitfalls, making DAOs more resilient.
Even AI seems to agree— in a humorous post, Takisoul showed ChatGPT picking Sowellian over futarchy in a one-word showdown.
The Bigger Picture in Blockchain Governance
As Takisoul argues, there's no magic bullet for coordination in DAOs. Sowellian is one module in the experiment to govern without centralized leaders. For meme token holders, this could mean fewer failed pumps and more meaningful growth. If you're in a Solana DAO or holding meme tokens, keep an eye on innovations like this—they could redefine how communities build and thrive.
Stay tuned to Meme Insider for more on emerging governance trends in the meme token space. What's your take on Sowellian? Drop a comment below!