July 19, 2023 at 15:24 GMTModified date: July 19, 2023 at 17:39 GMT
July 19, 2023 at 15:24 GMT

Polygon Labs reveals governance mechanism revamp

Polygon has unveiled plans to revamp the governance model of its ecosystem ahead of Polygon 2.0, with a proposed ‘Ecosystem Council’ for smart contract upgrades

Polygon Labs reveals governance mechanism revamp

Polygon Labs has unveiled plans to revamp the governance model of its ecosystem ahead of Polygon 2.0. The forthcoming model is set to prioritise community involvement, granting ecosystem members complete authority to decide on proposals. 

To realise this objective, the proposed framework introduces a “three governance pillar” structure. The three pillars as outlined in the report are – Protocol Governance, System Smart Contract Governance and Community Treasury.

By implementing a separation of power, the governance process becomes scalable and efficient. The approach also ensures that governance responsibilities are appropriately distributed and allows for streamlined decision-making.

Exploring the three governance pillars

The first pillar, Protocol Governance intends to provide community members with a formal way of proposing protocol upgrades. The second pillar, System Smart Contract Governance focuses on enabling upgrades of protocol components that are implemented as smart contracts.  

To achieve these,the team aims to secure continuous support which will foster the long-term growth of the ecosystem. Hence, the proposal suggests the establishment of a self-sustainable ecosystem fund through the third pillar known as the Community Treasury. This fund will be used to support various initiatives within the ecosystem. 

The proposed roadmap for the governance of the Community Treasury consists of two phases.

Phase 1 is focused on setting up an autonomous Community Treasury Board that will provide funding for ecosystem support and public goods. This phase emphasises strategic execution and active participation from the Polygon community in the decision-making process.

In Phase 2, the governance of the Community Treasury Board and the Treasury itself evolves to become more community-driven. This transition involves implementing innovative mechanisms such as quadratic token voting and self-sovereign identities, empowering the community to have a direct say in shaping the governance of the Community Treasury.

Influenced by Ethereum

According to the report, Polygon’s new model is heavily influenced by successful blockchain governance models, particularly Ethereum‘s, whose ‘open and inclusive’ governance approach has played a crucial role in maintaining and developing its own network.

Before unveiling the new governance model, the team claims to have proactively sought feedback from the public through forum posts, community calls, public discussions, stakeholders such as validators, users, infrastructure providers, dApp developers, and other participants. They reported that they received valuable feedback on the proposed governance vision which was overwhelmingly positive. 

The update comes just two days after Polygon Labs shared an important development on the Miden public testnet which it intends to launch by Q4 2023. Miden aims to provide a forward-looking scaling solution while maintaining the robust security of the Ethereum network.

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