Blockchain circle

One stop hot information platform

About us:

Blockchain circle provides the latest information about blockchain, digital currency, digital wallet, exchange, metauniverse, bitcoin, Ethereum, contract, financial management and so on, and always pays attention to the latest market...

Learn the blockchain governance design framework: Prysm, group, wheel

Time : 08/02/2022 Author : ilct3e Click : + -
        The blockchain platform is an economy written in code. The goal of any blockchain based platform is to let participants (such as buyers, sellers, miners, voters, etc.) connect with each other to trade and create value. Participants in the blockchain based market mainly focus on buying and selling mutually beneficial goods or services. For example, miners in the unlicensed blockchain try to profit by trading their computing power and bandwidth resources to obtain large rewards and transaction costs. As we discussed earlier, the economy needs to be designed in a multidimensional way to function effectively. The most important (and perhaps most misunderstood) aspect is governance. In this article, we discuss governance in depth, analyze its differences from operating rules, and outline the framework we use to customize and design effective governance for the blockchain platform.
        The operational structure is the rules and processes jointly formulated by both parties to help manage the daily functions of the platform or ecosystem. For example, the algorithm can help determine the next block in the chain and the size of the block award granted to the miners. These key operating structures are the foundation of the platform and are critical to the normal operation of the platform. They ensure that contracts, markets and token economies act effectively and allow individuals to reach mutually valuable agreements. In contrast, governance is a set of mechanisms through which communities can choose to change or update their operational rules. If an event occurs that is not covered by the operating rules, the community will also decide to take an action plan to correct these use cases.
        If the operating rules are composed of all written procedures and protocols in black and white, governance is a set of processes that can help us solve the gray area between the two. All systems need flexibility to adapt to inevitable market changes over time. In traditional organizations, the leadership team will make these decisions continuously. In the decentralized blockchain platform, this central organization needs to be replaced by other things. What form the decision-making body should take is an ongoing and controversial debate in the blockchain community. Like any economic or technical component of a blockchain project, governance must be customized for the specific task at hand if it is to be effective.
        The low-cost practice of pasting and copying governance structures is a simple but limited process, often with poor long-term benefits. Investing time in designing governance for a specific platform in advance will pay off later. Before designing governance, we suggest that the platform first define its operating rules. These include contract design, market design, information system and token design. Predefining these elements ensures that governance addresses all aspects of the need for change. Once the platform is ready to deal with governance, we suggest to consider the following elements in turn. These seven elements of economic design for governance need not be completed in a specific order. However, with the development of platform design, they should be re studied frequently.
        For example, some decisions will require proprietary information and the participation of experts to benefit, while other decisions will need to incorporate the preferences of community members in order to obtain sufficient support for the decision. A preliminary overview of the categories of operational processes that will need to be upgraded over time and all potential decisions that need to be made will help ensure the cohesion of the entire process and a robust governance system. Every participant in the blockchain ecosystem is interested in the overall success of the ecosystem because it is a mutually beneficial operation. The goal of the governance system and the motivation behind the "decentralized" governance mechanism are to ensure that decisions made on the ecosystem are in line with the wishes of all participants.
        Defining stakeholders and their various objectives at the beginning of the project is critical to the success of the governance system. In this way, you can resolve how to deal with any conflicting goals to best achieve the overall goals of the platform. The ideal balance may not be achieved, but keeping this in mind will set the direction for the design of the governance system. In order to finally implement the decision, specific recommendations must be developed. This is especially true for blockchain projects, as these decisions often have to be translated into code. The timing of proposal development depends on the governance process. Consider the example of a government referendum, which is the ultimate form of direct democracy. In some places where referendums are often used, such as California, a sufficiently clear law to be enacted has been submitted to citizens for voting.
        This means that a small number of people have fully formulated the law before citizens even have the opportunity to express their views. In other places, such as the United Kingdom, the process is basically the opposite: first, a referendum decides whether to adopt certain policies, such as leaving the EU, and then, after the vote, a few politicians decide to determine the exact details. This involves identifying the changes that need to be made, general ideas on how to solve the problem, and a way of communicating them to the decision-making body. Any well-designed governance system must have a clear process for making recommendations. As mentioned above, the timing of the proposal and the policy-making process may vary depending on the specific design.
        Some governance systems allow a very general policy to be proposed and R & D to be completed after its adoption. In other governance systems, complete specific policy changes are required before the proposal process begins. When a variety of stakeholders participate in decision-making, no matter how trivial it may seem, it is essential to clearly convey the required information to make an informed decision. Many decisions that the blockchain ecosystem must make are very complex. In some cases, technical or economic expertise may be required to truly understand the impact of potential changes on complex platforms. The results of the policy research and development process may be critical to the understanding of participants, as participants can understand when determining which option is best for them and the community.
        Without a designated communication channel for sharing reliable information about potential decisions with the community, the governance system will not function properly. For example, due to the lack of shared information in the chaotic process, bitcoin cash was hard forked, and the community informally organized different factions online and face-to-face. The dispersion of information leads to uncertainty as to which proposals actually need to be considered and how much support each proposal has. Even if an agreement is reached on the surface, there is still confusion about whether to implement the agreement. In the end, not all miners imposed it, leading to bifurcation. Therefore, the design of any governance system must include official mechanisms for transmitting information to participants, even if the information provided by these mechanisms is from crowdsourcing rather than "official" sources.
        Such a system enables the community to coordinate and determine the outcome of its decision-making process, which is best for all participants. There are many mechanisms that can help you make the final decision. This can only be achieved when a fully specified proposal is created and the required information is provided to the governance participants. In some cases, the mechanism may be community wide voting, with specific provisions on the number of participants (quorum) and how many votes must be cast on a proposal to approve it. At the other extreme, some decisions may be delegated to a specific role in the community (similar to the CEO), and the person selected by the role will be the final decision.
        Of course, there are many choices between these extremes. An important and often neglected issue around governance design is the property rights of ecosystem stakeholders. For the blockchain based platform, participants have successfully voluntarily contributed many resources that are critical to the success of the network, and the participants still retain the ownership of these resources after allocation. A typical example is the computer processor contributed by bitcoin miners. Ownership of resources can empower some participants at the implementation stage of the governance process. For example, if the purpose of implementing stakeholder voting is to determine which protocol will be used for upgrading, the results of a specific vote will only be meaningful to the platform and its equipment when the nodes of the system choose to upgrade on their computers instead of leaving.
        If a participant controls 80% of the resources required for the operation of the system, thus controlling most of the informal power in the community, the rule of "one person, one vote" is almost meaningless. A complete governance process design may require several cycles to be combined in a cohesive manner. This is because it is a crucial step to understand how the various elements work together, effectively enabling participants to design governance processes that fit the context. It is best to plan several design iterations before obtaining the most favorable results. In order to achieve the best balance of the system, it must have a well structured operational structure and a well considered governance design to manage and implement decisions to ensure that the preferences of relevant stakeholders are represented.
        This balance can be achieved by following the framework suggested above to ensure that each of its seven elements is thoroughly addressed.
Previous:What did wechat bank do right to let the blockchain go to thousands of banks, industries and 70000 developers?
Next:No more

Related articles:

© 2005-2032 | Blockchain Circle & & All Rights Reserved    Sitemap1 Sitemap2 If there is infringement, please contact us at: