covoting

Covoting, short for co-voting, refers to the coordinated voting of multiple parties to influence the outcome of a vote on a proposal, election, or governance decision. It involves aligning ballots or pooling voting power through proxies, formal agreements, or shared voting rules. Covoting can occur in corporate governance, political or civic ballots, associations, and decentralized blockchain governance.

Mechanisms of covoting include forming a voting bloc or alliance, public or private coordination agreements, proxy voting arrangements, and on-chain settings where token holders delegate votes or participate in weighted voting systems. In practice, participants may agree to vote in concert on specific issues to maximize their collective influence or to advance a common agenda.

Contexts and examples vary. In corporate governance, asset managers or large shareholders may coordinate votes on shareholder proposals or board elections. In political or civic settings, advocacy groups may mobilize coordinated voting to push particular outcomes. In decentralized finance and DAOs, covoting describes token holders coordinating on proposals to steer governance, share resources, or secure favorable terms.

Advantages of covoting include amplified influence for groups with shared interests, reduced vote fragmentation, and potentially clearer, faster decision-making for certain issues. Criticisms focus on reduced individual autonomy, potential suppression of minority views, opportunities for collusion or manipulation, and concerns about transparency and fairness. In regulated contexts, covoting can raise fiduciary, disclosure, or anti-collusion concerns.

Regulatory and governance considerations emphasize transparency of coordination arrangements, disclosure requirements where applicable, and the need to balance collective influence with protections against opaque or coercive practices.