How to design a good community incentive plan and decentralized governance model?
How to make a good governance model is probably the most troublesome issue for every blockchain designer. Blockchain is a product of decentralization. What is decentralization? That is, there is no third-party central control in the blockchain network.
The simplest example is Twitter (China is Weibo). The entire online social atmosphere of Twitter is controlled by Obvious. The so-called community/platform administrator is not someone else, but a staff member of Twitter. Therefore, whatever the Twitter administrator thinks is wrong, it will be displayed as wrong-such as the logo under Trump’s Twitter.
So what kind of governance model is in the blockchain? There are roughly three types:
Founder control. This is similar to the traditional company model-the blockchain will be controlled by the founder. For example, Filecoin is still under the control of the development team. We will wait and see if it will change in the future.
Group control. This should be the most typical model of the current blockchain-controlled by an elite team of community organizations. For example, in Bitcoin, the core development group has been formulating policies, determining product roadmaps and strategic directions, and proposing systemic changes.
“Representation” or “liquid democracy”. It is common in PoS blockchain projects, such as the NPoS adopted by Polkadot-the governance of the chain needs to go through “community proposal” → “governance committee review and initiate referendum” → “community referendum” → “governance committee develops implementation plan” , After this series of operations are completed.
So, for the blockchain application that requires complete decentralization, it seems that “representation” or “liquid democracy” is more suitable. Then, under such a governance model, how to provide incentives for the community to participate more actively is particularly important.
But with a good governance model, it won’t work if there is no incentive mechanism for the community to actively participate in governance.
In order to ensure the unique attributes of the blockchain, CEP adopts the mechanism of DAO (Decentralized Autonomous Organization, translated as decentralized autonomous organization) to achieve complete decentralization — using smart contracts and distributed governance systems — decided to have Investors make, smart contracts are executed directly, and there is no possibility of centralized control.
In order to encourage community participation, CEP follows the principle of “streaming democracy” and grants governance rights to governance tokens. The voting weight is determined by the ownership of governance tokens. At the same time, CEP’s token distribution method adopts a fair start model, 90% are provided to the community that provides liquid mining for the project, and the future development of the project is discussed and decided by these community members who have governance tokens.
Through this “completely decentralized” democratic mechanism, in conjunction with the fair launch of the token distribution mechanism. CEP will embark on a road of sustainable community autonomy, fully guarantee the interests of participants, and maintain the long-term stability of the project.
Vision of CEP:
Make Crypto Easy
- CEProject will make unremitting efforts to build an excellent and sustainable blockchain cryptocurrency investment market.
- CEProject will continue to update the progress of the project. If you have any constructive Suggestions for our project, please contact us, so that we can jointly witness the development of the cryptocurrency investment market.
