Synthetix Considers Delegated Governance Model DeFi Rate

Synthetix – the decentralized synthetic asset issuance protocol – recently approved a governance change that intends to transition its voting process from Discord to Snapshot. Synthetix Founder, Kain Warwick is now following up with a second proposal that intends to optimize governance as Synthetix transitions to using the Snapshot platform.

While the initial proposal regarding Snapshot adoption was met with little opposition, key members of the Synthetix community voiced concerns that without some key modifications to the voting mechanisms that exist today, governance can easily devolve into a plutocracy where a single large vote represents more weight than multiple smaller votes, despite the higher levels of actual participation from the smaller token holders.

In order to solve this issue, Kain is now proposing that the SNX community enable a delegated governance council called “The Spartan Council”. There will be seven open seats in the council, each selected through Snapshot voting. This council will serve as a representative democracy controlled via token delegation. Full details of how the formation and ongoing operation of the council will work can be found in this Synthetix Improvement Proposal.

The elected council members will then vote directly under the following ruleset:

  1. One council member one vote
  2. If the constitution of the council changes during a proposal it is invalidated if it would have changed the result
  3. Proposals require a minimum of three positive votes to pass
  4. The minimum proposal length is 24 hours
  5. The pDAO can require a revote at its discretion
  6. The number of seats can be modified via SCCP

This new proposal attempts to move the Syntetix community forward and increase the speed of iteration without damaging the grassroots culture that has made SNX so successful. Everything is planned with the end goal of ensuring that each unique user gets one unique vote. Smaller holders can delegate to a council member to represent them so they don’t have to spend time combing through every proposal that comes through. If the community decides to go with Kain’s proposal, the next step would be to hold the actual election via Snapshot.

Keep up with Synthetix by following them on Twitter.

The post Synthetix Considers Delegated Governance Model appeared first on DeFi Rate.

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