What it is
Conviction voting is a way to fund proposals continuously rather than through periodic up-or-down votes. Members signal support by locking (staking) tokens behind a proposal, and the longer support stays in place, the more "conviction" it accumulates — like a battery charging. When conviction crosses a threshold tied to how much money is being requested, the proposal executes automatically, with no fixed voting deadline or quorum.
How it works
- A shared pool of funds (a "common pool") exists, often replenished by ongoing token issuance or protocol revenue.
- Anyone can submit a funding proposal specifying an amount requested from the pool.
- Token holders stake (lock) some or all of their tokens behind proposals they support; a token can typically only back one proposal at a time.
- Each proposal accumulates a "conviction" score that grows the longer support remains staked, following a decay curve — conviction rises while support holds and decays if support is withdrawn, smoothing out short-term flips.
- The threshold a proposal must cross to pass is a function of the amount requested relative to the pool: small requests need little conviction and pass fast; large requests need much more sustained support.
- Once conviction crosses the threshold, the smart contract releases the funds automatically — no separate execution vote is needed.
- Members can withdraw their stake at any time to redirect it to a different proposal, and conviction on the abandoned proposal decays rather than vanishing instantly.
- Multiple proposals can accumulate conviction in parallel, so many small requests can be funded simultaneously without competing in a single discrete election.
Why designers use it
- Removes the overhead of scheduling votes, setting quorums, and coordinating turnout for every single spending decision.
- Naturally weights decisions by sustained conviction rather than a one-time snapshot, discouraging last-minute vote flipping.
- Lets many small, low-controversy proposals pass quickly while reserving real friction for large, contentious requests.
- Fits communities with continuous funding needs (ongoing grants, public goods) better than episodic ballot-style governance.
Failure modes
- Reflexive treasury risk: if the common pool is denominated in the community's own token, a price crash shrinks real funding capacity right when the community needs it most.
- Plutocratic drift: conviction is still proportional to tokens staked, so large holders can outlast smaller ones simply by having more capital to leave locked indefinitely.
- Sybil dilution: without identity verification, one person can split holdings across wallets to support multiple proposals that a single wallet couldn't back simultaneously.
- Gaming via micro-proposals: bad actors can split a large request into many small ones, each individually under the radar, to bypass the higher threshold meant for big asks.
- Illiquidity for voters: because staking locks tokens away from other uses (trading, other governance), participation can be discouraged during volatile markets.
What to check before using it
- Decide whether the common pool holds the native token, external assets (stablecoins/ETH), or both — this determines how exposed funding capacity is to token price swings.
- Tune the conviction growth/decay half-life and threshold curve to your community's proposal volume; too slow and nothing gets funded, too fast and it's gameable.
- Consider pairing with identity or sybil-resistance tooling if funding power should reflect distinct humans rather than raw token balance.
- Model how large a single proposal can be relative to the pool before it structurally cannot pass, or before it can drain the pool too fast.
- Decide whether stake is at risk (can be slashed) or purely locked-and-recoverable, since that changes the psychology of long-term commitment.