Introduction

The Lil Nouns are an Ethereum NFT project that brings a unique minting mechanism to the NFT space. One Noun is auctioned every 15 minutes, forever. 100% of the proceeds from these auctions are sent to the DAO treasury.

Lil Noun token holders are entitled to one vote in the DAO. As of the time of this writing 16 proposals have been held and two are currently active.

This dashboard investigates whether tax fees for voting on Ethereum prevent users with a lower balance from voting.

Descriptive Analysis

Voters

The graph below shows the number of votes and unique voters per proposal.

We can see that the number of unique voters has decreased down to 20 voters while the number of vote has increased over time.

Voters at the time of voting on average hold 6,04 Ethereum and total balance on average 3151 USD.

Analytical Analysis

The goal of this section is to test whether transaction fees decrease the inclination toward participation in governance voting.

The graph below shows the average number of votes per voters over time. We can see a clear upward trend in the average number of votes. This implies that over time voters with more number of Lil Nouns participated in voting. In other words having more Lil Nouns leads to more engagement in the governance. This can also interpreted as smaller holders excluded from the voting process

Transaction fee

The graph below shows the total transaction fees paid for each proposal. We can see that there is a correlation between number of participants and transaction fees.

Graphs below show the average total balance (in USD) and Eth balance of voters per proposal.

We can see that the average balance of voters is decreasing (set aside the proposal 17 which is still active).

This reject the hypothesis that the smaller wallets excluding from the voting process.

The graph below shows how much ETH has been paid by each voters per proposal.

Conclusion

The data and analysis show that the number of voters has slightly decreased since the time of first proposal. In investigating the cause of this decrease we cannot see direct effect of transaction fee which exclude smaller wallets.

We saw that the more NFT users have the more likely to keep their engagements in the governance.

To better understand of the effect of tx_fee on participation in voting, further research should zoom in on Lil Nouns holders and compare the average balance of participants and non-participants.