I just found the following article about Cross-Chain Governance https://medium.com/iotex/cross-chain-governance-a-new-paradigm-244c81605ca9, and I think the idea is very interesting for Polkadot and worth to explore further (if this isn’t already the case) and maybe even add cross chain economics to it, as two new fields of research. The simple idea is that the governance/economic incentive of one chain is handled on a different chain (=Polkadot).
When I first started to think about the parachain concept and started to work on our Starlog web3 grant (https://github.com/PACTCare/Starlog), I immediately run into the problem that I also need to create some kind of governance/economic solution for the parachain, which ultimately lead to the situation that I came up with my own whitepaper draft (https://github.com/PACTCare/Stars-Network/blob/master/WHITEPAPER.md). This makes creating a parachain quite complex, and I think ideally creating a parachain should be as easy as possible. Maybe there could be some plug and play governance solutions offered by polkadot for everyone who doesn’t want to think about their own governance system and focus on the purpose of the chain itself.
Ideas for Polkadot Cross Chain Governance
I think there are two distinct cases of potential cross chain governance/economics with polkadot:
1. Chains connected via bridges
That’s more or less described in the article except that you can move your tokens between the different chains. This could be a huge incentive to move tokens on the ideally more secure relay chain (=Polkadot) to participate in the governance process. Additionally, if dot holders earn the fees of transactions on Polkadot, it makes also dots more valuable. (Similar to the IBC model of cosmos: atom holders earn the fees of tokens transferred through the hub).
Currently, you earn the slot of a parachain by participating in the auction. For one company alone it’s probably quite expansive to get a parachain slot. The simplest solution would be that everyone who bids for a specific parachain gets the right to participate in the governance of the chain itself. To incentivize this, people who bid for a specific parachain also earn a percentage of the transaction fees of the specific chain (the rest might be shared between collator nodes/developers of the chain).
This post is just a very quick first draft, after reading the above article and open for discussion.