Polygon Introduces New Governance Model Featuring "3 Pillars of Governance"
Continuing its updates with the rollout of Polygon 2.0, the project team has proposed a new governance model comprising 3 core pillars aimed at enhancing decentralization within the ecosystem.
Polygon Introduces New Governance Model Featuring "3 Pillars of Governance"
As part of the Polygon 2.0 upgrade roadmap, the project team has unveiled intentions to establish a new governance framework to bolster decentralization.
Specifically, according to the research team, the new governance model will consist of the following "3 pillars of governance":
- Protocol Governance:
- The project has already implemented the Polygon Improvement Proposal (PIP) framework, an open collaboration platform for advancing Polygon 2.0.
- Smart Contract Governance:
- Aimed at enabling protocol components to be deployed as smart contracts. To enforce this, the project proposes the establishment of an Ecosystem Council, responsible for managing and overseeing smart contract upgrades.
- Community Treasury:
- The project proposes creating a sustainably self-operating ecosystem fund to finance promising initiatives and projects within the Polygon ecosystem.
Of note, in all three aforementioned governance pillars, the MATIC token is utilized throughout to empower holders in voting, proposals, and execution activities. Just days ago, Polygon proposed renaming MATIC to POL, positioning it as a multi-chain token.
These initiatives are evidently geared towards expanding the utility of the native token and increasing token holder engagement.
At the time of reporting, the price of MATIC has shown minimal fluctuations, trading around $0.74 USD.
The 1-hour MATIC/USDT chart on Binance as of 04:30 PM on 19/07/2023:
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The project states that it is inviting relevant parties including validators, dApp developers, and users to participate in building the new governance model.
"To achieve this, we are proposing a linear framework to enhance ownership rights and decentralize decision-making across all protocols within the Polygon ecosystem."
In previous updates of Polygon 2.0, Polygon announced a new development roadmap for the Polygon POS chain and implemented the Re-staking mechanism for MATIC tokens.
