Governance in decentralized systems is an important part of achieving flexible and efficient running of networks. The coming together of the majority of a network’s participants to create and enforce certain rules is a concept which is widely adopted in blockchain governance as well. This derives from blockchain’s core proposition of decentralization.
This means that no single entity has control or authority over a blockchain network and a network is managed by the consensus of its users. It is this organization of users that forms a Decentralized Autonomous Organization (DAO).
A DAO is essentially a network of users that operate according to a set of pre-defined rules and protocols. It is a self-governing entity that is not controlled by any central authority.
Starcoin provides a useful feature for decentralized applications in its ecosystem. With built-in libraries, apps can easily incorporate DAO capabilities, empowering both Starcoin users and ecosystem application users to govern their network in a decentralized manner.
Starcoin standard library (Stdlib), a prominent feature of Starcoin network, is also implemented using Move. Stdlib functions in the storage of data generated by smart contracts. This makes it convenient for Starcoin to define contracts with some basic functions and enable other contracts access. Stdlib includes some basic protocols such as token protocols, on-chain governance DAO, NFT protocol, etc.
The DAO implementation enables users to vote on on-chain parameters and upgrades. It is a component of the Stdlib feature which relates to on-chain governance, voting and consensus execution.
Though an evolving concept, blockchain governance has the potential to revolutionize the process of digital asset management, creation of smart contracts and operation of decentralized autonomous organizations. A basic understanding of its prospects, workings and deployment in the successful implementation of DAOs is important to unlock the creation of secure and resilient networks.
What is the process of governance and DAO functionality on Starcoin? Stay tuned for the next edition!
About Starcoin
Starcoin provides the utmost security from the origin via its enhanced PoW consensus and Secure smart contract, using the language of Move. Through layered and flexible interoperability, it optimizes the building of ecosystems such as DeFi, NFTs, Gaming, etc., with higher efficiency and convenience. This process redefines value by empowering every participant in the ecosystem to enjoy the multiplication of values.
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