Just like any other system, blockchain platforms require maintenance, upgrades, and support, all of which have everything to do with money. For the latter, the blockchain platforms rely on donors, sponsors while other platforms are privately funded. Once funds are in order, it translates to the managerial department to decide how much money goes to developers, marketers, project administration and other platform expenses to propel the platform into the next level.
However, for blockchain platforms, governance has been a thorny issue that causes setbacks in every platform, but researchers at Cardano gave a solution. Led by Dr Binshang Zhang researchers have developed Cardano Treasury System which uses liquid democracy to solve the governance issue in blockchain platforms. The latter was coined out of traditional voting systems and will come in to solve two problems.
For the first issue on funds, Cardano’s Treasury System will ensure equal distribution of funds to ensure platform sustainability. Furthermore, the system will ensure all experts involved in operating the platform get paid.
Cardano’s Treasury System will be of Huge Help to Governance of Blockchain Platforms
While its usage on funds management is essential when it comes to decision making, liquid democracy which combines workings of traditional voting methods will be a game charger in decision making. The latter is more transparent and will get rid of authoritarian impositions from the leadership. In short, through Cardano’s liquid democracy, a fair voting system will be implemented through the implementation of a community inclusive voting system. The latter will implement a distributed collective decision-making mechanism which will enable voters to delegate voting rights to others.
Through liquid democracy, community members who have voting rights will be able to allow others to vote by giving them voting rights. Furthermore, those who have been given that power can further delegate the voting rights to other experts who understand more about that particular blockchain ecosystem. Through the above, every expert in that blockchain system will get the power to participate in decision making.
As Cardano’s treasury system takes its place in the crypto community, different blockchain ecosystem are likely to integrate it into their platforms.