Lagrange reconstructs DAO governance through a dynamic governance model and economic incentives, providing a new paradigm for DAO governance, boosting the LA token staking rate from 15% to 42%, and making the community activity level the highest in the ZK track.
The core innovation lies in the quadratic voting + resource auction mechanism:
1. Dynamic adjustment of proposal weight: Staking LA tokens grants governance voting rights, with voting weight proportional to the square root of the staking duration, suppressing short-term speculative behavior.
2. Resource auction system: The AVS protocol requires bidding for proof of resource quotas, with 50% of auction proceeds used to repurchase and burn LA tokens, creating a deflationary cycle.
3. On-chain arbitration committee: Composed of 101 randomly selected stakers, it handles governance disputes, with adjudication results automatically executed.
During its operation on the testnet, this model successfully addressed three major governance challenges:
• Efficiency issue: A proposal for a cross-chain bridge took only 72 hours from initiation to approval, five times faster than traditional DAOs.
• Fairness issue: Through resource auctions, the resource occupancy rate of leading AVS projects dropped from 65% to 38%, allowing more development opportunities for small and medium-sized projects.
• Incentive issue: Governance participants can receive 30% of the auction proceeds as rewards, and users in the top 10% of proposal quality ratings receive additional LA token airdrops.
In terms of ecological co-construction, Lagrange has established a 10 million LA ecological fund to support developers in submitting governance proposals. After a proposal for an “AI model verification interface” submitted by a developer team was approved, they received a reward of 200,000 LA, and the tool they developed has been adopted by 12 projects, driving the LA token price up by 15%.
The foundation also announced that in the future, 5% of proof fee income will be used for community development, further strengthening decentralized attributes.
For investors, participating in governance not only brings economic benefits but also allows them to grasp the long-term value of LA tokens by influencing the technical roadmap. With the launch of the Lagrange governance white paper, it is transforming from a “technical protocol” into a “decentralized autonomous economy,” providing a new paradigm for value capture in cryptocurrencies.
