Introduction

Continuing with our work on quantitative analyses relevant to DAOs, we are also exploring delegation networks.

We define a delegation network as a network of governance participants where participants delegate their voting power (or governance rights) to another participant to participate in governance matters on their behalf.

Governance participants can be classified as a delegator, delegatee, or both (in the case that a participant can or must delegate to themselves to participate in governance matters).

In this pub, we examined MakerDAO’s delegation network. In Maker DAO, “[d]elegation is an expression of the MKR Holder's trust in the delegate.” Thus, we can say that Maker DAO’s delegation network acts as a trust network.

Methods

Data Collection

We collected delegations in Maker DAO from Boardroom’s Governance API.

In total, we collected 591 delegations.

We divided delegations into two types:

1. self-delegation, and

2. proxy-delegation.

Self-delegation occurs when a voter delegates their voting power (partial or full delegation of tokens) to themselves. In the network visualization, these self-delegations are self-loops, colored in red.

Proxy-delegation occurs when a voter (delegator) delegates their voting power (partial or full delegation of tokens) to another voter (delegatee). In the network visualization, these proxy-delegations are directed links between delegator and delegatee, colored in green.

Regarding proxy-delegation, there were nine (9) delegators and twenty-five (25) delegatees.

Data Analysis

I counted how often a delegator conferred a delegation, and how many delegations a delegatee received.

I analyzed degree centrality in the Delegations Network to determine how important a delegator or delegatee is in the Delegations Network with the networkx Python library.

I visualized the Delegations Network and sub-networks with the gravis Python library.

I visualized the counts with the plotly Python library.

Results

Delegation Counts

Delegations conferred

Table

Visualization

Delegations received

Table

Visualization

Degree Centrality

Delegations Network

Self-delegations Sub-network

Proxy-delegations Sub-network

Network Visualizations

Images

Delegations Network

Self-delegations Sub-network

Proxy-delegations Sub-network

Interactive Graph

Findings

0xc0583dF0d10c2e87aE1873b728A0BDa04d8b660C conferred the most delegations with twenty-two (22) delegations conferred.

0xAFaFF1a605C373B43727136c995D21A7fCD08989 received the most delegations with five (5) delegations received.

0xc0583dF0d10c2e87aE1873b728A0BDa04d8b660C2 had the highest degree centrality in the Proxy-delegations Sub-network at 0.66, and in the Delegations Network at 0.04.

Thus, we can say that 0xc0583dF0d10c2e87aE1873b728A0BDa04d8b660C is the most important address (and delegator) in Maker DAO’s Delegations Network.

Future Directions

Future directions I may explore in updates to this pub are listed below.

1. Explore delegation pitches to see which pitches lead to more delegations

2. Determine how to measure trust in delegation (e.g., through token amounts delegated or the number of delegations conferred)

3. Determine historical delegation trends

4. Add colors to differentiate delegators and delegatees

5. Add size to nodes accounting for their delegations conferred/received

6. Create a dashboard with Gradio or Plotly Dash

7. Embed an interactive network visualization

Request for Comments

I am seeking feedback on this pub for any improvements to make, errors to correct, questions to address, or other areas to explore.

Please leave your feedback here, on the Ledgerback discussion forum, or on Twitter.

Contact Information

1. Twitter