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contracts/voting/dao-voting-cosmos-staking/README.md

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+# Cosmos SDK Staked Balance Voting
+
+> **WARNING**: This contract is experimental and should not be used to govern
+> significant assets nor security-critical procedures. Due to the limitations of
+> the Cosmos SDK and CosmWasm, this voting module cannot provide the guarantees
+> needed by a fully secure DAO. More on this below.
+
+A DAO DAO voting contract that uses Cosmos SDK staking for calculating voting
+power. This allows a DAO to mimic members' stake in the chain (and thus voting
+power in chain governance props).
+
+## Limitations
+
+Unfortunately, CosmWasm does not currently allow querying historically staked
+amounts, nor does it allow querying the total amount staked with the staking
+module. Thus, this module suffers from two primary limitations.
+
+### Voter's staked amount
+
+Voting power for a voter is always calculated based on the current amount staked
+(regardless of which block is requested in the query) since there is no
+historical info. Since proposal modules query and save this value when a voter
+casts a vote, the voting power used is frozen at the time of voting.
+
+If revoting is not allowed, a voter may be incentivized to wait for others to
+vote, acquire more voting power, and vote once the others cannot change their
+voting power.
+
+If revoting is allowed, voting power is updated when a voter changes their vote.
+This opens up the possibility for a voter to manipulate the perceived outcome
+while a proposal is still open, changing their voting power and revoting at the
+last minute to change the outcome.
+
+Cosmos SDK governance operates the same way—allowing for voting power to change
+throughout a proposal's voting duration—though it at least re-tallies votes when
+the proposal closes so that all voters have equal opportunity to acquire more
+voting power.
+
+### Total staked amount
+
+The contract cannot determine the total amount staked on its own and thus relies
+on the DAO to set and keep this value up-to-date. Essentially, it relies on
+governance to source this value, which introduces the potential for human error.
+
+If the total staked amount is ever set to _less_ than any voter's staked amount
+or the sum of all voter's staked amounts, proposal outcomes may erroneously pass
+or fail too early as this interferes with the passing threshold calculation.
+
+## Solutions
+
+There is no solution to the problem of freezing voter's staked amount at the
+time of a vote. This mechanic must be accepted by the DAO if it wishes to use
+this contract.
+
+For the total staked amount, the easiest solution is to set up a bot with a
+wallet that is entrusted with the task of updating the total staked amount on
+behalf of the DAO. The DAO needs to authz-grant the bot's wallet the ability to
+update the total staked amount, and the bot needs to periodically submit update
+transactions via the wallet it controls.