How Edgeware aims to be a pioneer network in developing effective on-chain governance, and how it stands out within its competition.
What is on-chain governance?
On-chain governance is a system for managing and implementing changes to cryptocurrency blockchains. In this type of governance, rules for instituting changes are encoded into the blockchain protocol. Typically, developers propose changes through code updates and each node votes on whether to accept or reject the proposed change. On-chain governance allows decisions to be made in a transparent manner. There are a variety of different algorithms for making these decisions and these can differ significantly according to how and what the model aims to accomplish, but that’s a topic for another article. A couple of key points to note when identifying on-chain governance models:
- Any entity that holds the blockchain’s underlying token is able to vote on protocol changes. In informal systems, users and node operators can only signal their voice through community forums, social media sites, and mailing lists. They have no way to directly influence changes.
- Any changes agreed upon through on-chain governance will irrefutably be implemented. This is in contrast to informal systems in which code updates are all agreed upon ‘off-chain.’ There is a non-zero chance that whatever is agreed upon doesn’t come to fruition.
A substantial majority (estimated 80%) of utility tokens and smart contract blockchains have indicated their intention to move to on-chain and decentralized governance. It’s a way of getting everyone that is participating on the same page and allow for a much more organized community while significantly reducing the risk of a hard fork like we’ve seen on networks such as Ethereum. Although this all sounds good, it requires a lot of infrastructure to get something like this up and running. For a well functioning on chain system to exist, stakeholders need more efficient and easy to use coordination tools. When we look at Edgeware, the chain is taking a much more ambitious approach in utilizing on-chain governance from the use of toolkits provided by Parity’s Substrate and additional code from core developers working on Edgeware to work towards being able to leverage on-chain governance to add significant value and utility to the chain that is not commonly seen in existing blockchains.
How Edgeware utilizes on-chain governance
Communication, conversation, and voting are limited by the same unintuitive interfaces that hamper the growth of cryptocurrencies as a whole. Edgeware aims to be a pioneer network in developing effective on-chain governance. By iterating upon product interfaces, voting systems, and other governance primitives, Edgeware can accelerate the implementation and deployment of core technologies like sharding, proof-of-stake, efficient SNARK implementations, and run-time changes, implementing technical advances at a faster pace than other blockchains by taking advantage of these newer technologies which are being readily distributed and continuously improved. Edgeware network upgrades will be easier to coordinate and faster to deploy by using a clearly defined on-chain governance process.
Edgeware stakeholders will be able to collaborate on the roadmap of the network through on-chain signaling, by holding informal votes for the inclusion of specific items and proposals. This planning stage is a natural precursor to the on-chain governance process, and formal votes are held to fund and upon which agreed upon features are implemented. Establishing robust procedures for conducting on-chain upgrades will be an essential step towards ensuring the security of the network. All network upgrades should be audited and tested by multiple independent parties, and additionally approved by a significant quorum of EDG holders. As Edgeware looks ahead towards bonding with the Polkadot network the goal has aligned closely with main goal of Polkadot in uniting blockchains. Edgeware hopes to be the smart contracts platform that will be uniting these blockchains together to easily make transactions seamlessly and effectively in aid from innovative mechanisms such as on-chain governance.