The tragedy of commons is a problem that has haunted humans for centuries. It is a problem where each individual has the incentive to consume a resource. As rational human beings, people tend to maximize their personal winnings regardless of their negative impact on the community. Essentially, it's the desire to increase our assets without any limit in a finite system, leading to two diametrically opposite outcomes: a positive impact on the individual's value; and a negative impact on the community.
In the decentralized world, the tragedy of commons lines up with the free-rider problem. Free riders become a part of the community and then consume more than their fair share at the community's expense, or pay less than their fair share of the costs borne by the community. It is one of the main challenges in the crypto world, with projects worth millions managed by less than 1% of their stakeholders.
The solutionElasticDAO is a governance protocol that attempts to balance the competing interests between the different participants in a decentralized ecosystem. ElasticDAO achieves this by reducing the overall influence that money and early adopters have in existing DAO governance models.
We believe that aligning personal and community goals can give everyone a level playing field within the constructs of the DAO. ElasticDAO rewards behavior that strengthens the community and enables the token holders to take action against selfish actors, when those actions weaken the collective.
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