Question 1

What is a DAO governance health check?

Accepted Answer

A DAO governance health check is a free analysis that measures how decentralized and healthy a DAO's governance actually is. It examines voting power distribution, participation rates, and identifies whether governance is controlled by a few whales or genuinely distributed. ChainSights provides this as a free service with no signup required.

Question 2

How is a DAO decentralization score calculated?

Accepted Answer

The Governance Vitality Score (GVS) measures governance activity quality using four weighted factors: Sybil Resistance (35%) - percentage of voters that are genuine humans vs bots/coordinated wallets; Delegate Engagement (25%) - how actively delegates participate; Power Dynamics (20%) - concentration of voting power among top holders; and Grassroots Participation (20%) - involvement of smaller token holders. Important: GVS measures activity quality, not decentralization. Power concentration metrics (Gini, Nakamoto, Top 5 control) are in the Deep Dive Report.

Question 3

What is the Gini coefficient in DAO governance?

Accepted Answer

The Gini coefficient in DAO governance measures voting power inequality on a scale from 0 to 1. A Gini of 0 means perfectly equal distribution (every voter has equal power), while 1 means one entity controls everything. Most DAOs have Gini coefficients between 0.7-0.95, indicating high concentration. A lower Gini coefficient suggests healthier, more decentralized governance.

Question 4

What is the Nakamoto coefficient for DAOs?

Accepted Answer

The Nakamoto coefficient measures how many entities would need to collude to control 51% of voting power. A Nakamoto coefficient of 3 means just 3 wallets control majority power - a governance risk. Higher is better: a Nakamoto coefficient of 50+ indicates well-distributed power. ChainSights calculates this using identity-first analysis, grouping wallets by real-world entities rather than treating each wallet separately.

Question 5

What is a Governance Truth Report?

Accepted Answer

A Governance Truth Report is a comprehensive PDF analysis of your DAO's governance health. It includes the decentralization score (1-10), Gini and Nakamoto coefficients, whale and delegate identification, participation metrics, historical trends, and actionable recommendations for improving governance. Reports are delivered within 24 hours.

Question 6

How much does a Governance Truth Report cost?

Accepted Answer

ChainSights offers a free Quick Health Check (1 per month) with basic metrics including score, Gini coefficient, Nakamoto coefficient, and ranking. Paid reports start at EUR 99 for Standard (detailed analysis) and EUR 199 for Deep Dive (comprehensive with roadmap). Share your honest review on Twitter for EUR 20 cashback.

Question 7

Is there a free DAO governance tool?

Accepted Answer

Yes! ChainSights offers a completely free governance health check for any DAO using Snapshot. No signup or credit card required. You get your DAO's Governance Vitality Score (1-10), Gini coefficient, Nakamoto coefficient, and see how it ranks against other DAOs. One free check per month.

Question 8

What data sources does ChainSights use?

Accepted Answer

ChainSights analyzes data from Snapshot, the leading off-chain governance platform used by major DAOs like ENS, Uniswap, and Aave. We examine voting power distribution, proposal outcomes, voter participation patterns, and delegate activity across recent governance history.

Governance Health Check