The problem: the majority of Defi protocols implement tokens for protocol governance. However, they face similar challenges such as Voters' Apathy (users simply don't participate in votings) and Whales domination (the majority of voters are Whales). Typically, every voting engages no more than several % TTS as casted votes.
Meta-governance is an experimental solution for this problem, invented by PowerPool back in Aug 2020. The main idea is - what if collect minority token holders stakes into one, huge stake that can really influence outcomes of votings and delegate the right to govern this stake to broad social consensus? Basically, meta-governance is "governing of governing". Logic and implementation (an excerpt from PowerPool team discussion in Aug 2020) - Minority token holders can supply their liquidity in governance tokens to the contract. - Great! But what will be an incentive to do that? Why someone will deposit his tokens to some contract and delegate voting rights? - It should be financial product, generating yield from this liquidity. Additionally, it should distribute CVP tokens to provide rights to participate in meta-governance to all early LPs.
So, meta-governance requires to build a "host" Defi product that will collect TVL from the market offering yield for governance token holders. We decide to build an ecosystem of Smart indexes for this purpose: from one side it is Defi product with huge TAM (Total Addressable Market), and from the another one it is perfect liquidity sink for creating meta-governance layer. Currently COMP and UNI are implemented, while AAVE, SUSHI and some other tokens are on the way.
To learn more about meta-governance read our articles: 1. Meta-governance vision 2021: https://medium.com/powerpool/powerpool-2021-meta-governance-vision-and-roadmap-5cbb19edd503 2. One of first meta-governance articles (take into account, that PowerPool isn't a lending market anymore and uses indexes as a host model for meta-governance): https://medium.com/powerpool/powerpool-the-tool-for-meta-defi-democracy-8bb82f02f40