The cryptosystems will be analysed from 2 mechanism design aspects – benefits and shortcomings with suggestions on improvements.
BNS of Dfinity is a great method to resolve governance and human-error issues. However, it could be abused and attacked, should an individual choose to, by feeding poor decisions to the system and not providing the best strategy. This can be resolved by ensuring tokens stay in the mechanism for a longer time and to ensure staking in the mechanism is a minimum percentage of the individual’s total token quantity.
Although the threshold relay ensure randomly selected nodes to vote to ensure network security, they could be bribed off chain, similar to EOS China. There needs to be better incentive mechanisms in place, like Ouroboros, for instance, where strategy is a nash equilibrium.
Cardano took a longer time than other projects to be up and running, however, they collaborated with several universities and professors to create solid protocols. Many testings were done and solutions to prevent them are proven in the testnet. PoW bribery attacks are mitigated, but PoS has yet to be trialed. There is also a risk that voters are not well-informed enough to make a right decision. However, considering that the outcome is a nash equilibrium, there is no incentive to deviate.