The issue of capital inefficiency in governance systems is a prevalent concern, particularly with respect to the utilization of governance tokens within DeFi ecosystems. The problem lies in the fact that delegating voting power simultaneously forfeits the ability to use these tokens for other purposes, resulting in an opportunity cost.
To address this challenge, we propose a solution that enables the minting of a stablecoin utilizing governance tokens, while preserving the delegate's voting power. This allows participants to engage in DeFi activities without compromising their influence in governance processes. Consequently, delegators are incentivized to maintain their participation and contribute to the health and growth of these systems.
By implementing this approach, we can optimize capital efficiency within decentralized governance frameworks, fostering a more dynamic and robust ecosystem that benefits all stakeholders.