First-generation Decentralized Autonomous Organizations (DAOs) rely predominantly on "Coin-Voting" schemes (1 Token = 1 Vote). While permissionless, this model inevitably degrades into plutocracy, where capital centralization allows a minority of "Whales" to capture protocol utility. Furthermore, the liquidity of voting tokens exposes governance to "Flash Loan Attacks" and short-term rent-seeking. This paper introduces a novel governance primitive: Time-Decayed Stake-Weighted (TDSW) Voting. We propose a dual-class structure that weighs voting power not merely by capital magnitude, but by Capital Lock-Duration (Time) and Epistemic History (Merit). By introducing "Reputation Entropy"—where governance power decays automatically if not exercised - we solve the "Zombie Stake" problem and ensure that control remains with active, long-term contributors rather than passive capital aggregators. Author's Note: This paper is a foundational pillar of the Klyrox Protocol architecture, expanding upon the core framework published in The Klyrox Protocol: A Decentralized Framework for Optimistic Content Verification and Epistemic Reputation (available at: https://doi.org/10.5281/zenodo.18729968). It outlines the specific mechanics underpinning the concept of "Epistemic Capital," as explored in the complete five-volume series, The Algorithmic Monographs (The Algorithmic Invisible Hand, The Republic of Code, The Market for Truth, The Heavy Metal Intelligence, and The Synthetic C-Suite).
Ali Sadhik Shaik (Sun,) studied this question.