Update #100: Writing Expedition ✍️, Have Fun while Writing (Crypto/Technology

Introduction

I just want to share a technology related post with you guys today before I go to bed. There are alot of things to learn through this post. I think this is the first or second time am participating in Writing Expedition contest and I will be very active on it this week.

The Evolution Of Decentralized Governance Models In Blockchain Projects is our title for this week Wednesday. For blockchain applications that need to make decisions on a project level, decentralized governance models are a necessity. Governance models can abstract the decision-making process in a way that makes it possible to have transparent and fair outcomes.

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The growth of new governance structures has evolved over time with the expectation that these new structures will provide better decision making. It is also true that with the advancement of technology and the growing blockchain ecosystem, there has been a greater need for control and formal governance.

In this piece, we focus on the evolution of decentralized governance models in blockchain projects within the context of the governance systems that have come up. This will be done by highlighting 10 developments that have defined the space and will insight the reader on prospects of decentralized governance systems in blockchain projects.

Delegated Proof of Stake

Delegated Proof of Stake (DPoS) is a governance model based on the voting of stakeholders to elect validators. Validators in this structure create new blocks and ensure that the transactions are valid. DPoS is mostly used in decentralized blockchain applications with high transaction volume.

DPoS is mostly used in decentralized blockchain applications with high transaction volume. The permission for stakeholders to select validators gives a DPoS system a decentralized approach to management and ensures that the process itself is transparent and just.

PPoS enables any person or organization to validate a block in the network's ledger. This is one of the most important advantages of a DPoS system, enabling positive bias toward transaction speed.

Meritocratic Governance

Governing by merit involves a decision-making system where a person’s capabilities and achievements are evaluated as the basis for decision-making. Intelligence and skill are the primary aspects determining who makes decisions and at what level. Governance by Merit is normally applied in blockchain initiatives with the require skillset.

Governance by virtue is most prominent in blockchain initiatives with the respective skillset. Governance systems based on the Informational Decision Theory improves the accuracy of the outcome by enabling the decision-making process to be decentralized to individuals with the requisite knowledge. The outcome is more accurate with this approach.

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Governance in Blockchain Technology

The decisions made in a blockchain project are documented in the blockchain ledger which is clear to all stakeholders. When decisions are made ‘on-chain’, they become nearly impossible to forge. This is the reason why decision-making processes in an organization like Giveth is done on-chain. Giveth recognizes its users on their application, which makes Giveth’s decision making processes on their applications.

Another benefit of blockchain based governance is increased trust within an organization or a stakeholder group. By doing a hybrid of offchain and onchain systems, clear instructions lead to reduction in ambiguity, which in turn leads to trust.

Through the final governance structures, extra decentralization can be achieved: decisions are made directly by stakeholders, not through elected representatives. ‘On-chain’ means that the decision has been captured on the ledger, and is thus, public and verifiable. Any decisions made by the everestDAO will permanently exist in the contract.

Conclusion

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The development of various decentralized governance models features gave rise to new and unique approaches. The emergence of frameworks such as decentralized governance, blockchain-based governance, meritocratic governance, DPoS, and BFT architecture have marked the ecosystem’s drive for transparency, accountability, and community participation. These systems, if perfected, can change governing processes for most blockchain projects and ensure that the decisions are made in a decentralized, transparent, and just manner.

I invite @smartlouis, @marpa and @htooms to participate.