The revolutionary blockchain has experienced hurdles in the governance structure that agrees with the decentralized ethics it desires to uphold. Hence, centralized governance systems became the order of the day in the blockchain industry. That resulted in power concentration to some entities, sabotaging the foundational tenets of decentralization and transparency.
Decentralized governance emerges as a sustainable framework to ensure a typical decentralized blockchain ecosystem. The DMD diamond blockchain network, with its first industry HBBFT consensus, supplemented by dPoS (Delegated Proof of Stake) algorithm and smart contract abilities, is at the vanguard of this evolution, epitomizing a decentralized governance In its ecosystem.
What’s Decentralized Governance?
Decentralized governance entails the distribution of decision-making authority across a blockchain, contrary to vesting power on a single entity. This guarantees that not a single entity has total leverage over the evolution and direction of the blockchain. Participants in the blockchain can unanimously contribute to the decision-making functions, enabling an inclusive and democratic governance approach. Furthermore, it nurtures a more transparent, resilient, and censorship-resistant ecosystem.
Decentralized Governance on the DMD Diamond Blockchain
All thanks to the unique HBBFT algorithm that enables a decentralized governance model on the dmd diamond blockchain. This HBBFT consensus combines Byzantine Fault Tolerance (BFT) and Binary Byzantine Agreement (BBA) to arrive at a secure and efficient consensus.
This algorithm ensures that validators are selected based on their stake in the blockchain, their network trust score and a random element to ensure that the same candidates are not always in the active set. This mechanism eliminates the concentration of power and boosts decentralized decision-making processes on the blockchain.
The supplemented dPoS enhances network security and efficiency. It allows stakeholders who need help to run their validator candidates to delegate their coin weight to a validator. These stakers thereby contribute to decision-making functions in the ecosystem, eliminating any form of the centralized governance system.
Furthermore, integrating smart contract abilities in the ecosystem further strengthens its decentralized governance model. With self-executing contracts driven by predefined conditions and rules, decentralized applications (DApps) function autonomously, thus diminishing the necessity for centralized control.
In conclusion, the DMDv4.1 upgrade is with the complete transition into DAO (Decentralised Autonomous Organization) following the mainnet release. It’s an on-chain governance system that allows the DMD diamond blockchain stakeholders to vote on proposals and approve and fund projects.
All thanks to the DAO governance pot – a repository of funds gotten from 10% of every 12-hour epoch rewards (the ecosystem distributes 90% of every epoch reward between the validator of the active set), all unclaimed DMDv3 to v4 coins after the five-year claiming period post-DMDv4 launch and all abandoned coins (all staked coins on 10-year inactive validators in the ecosystem).
The DAO uses the DAO governance pot as a funding source for their approved projects on the blockchain. Furthermore, the DAO can adjust network parameters such as the minimum block time, heartbeat time, gas price, and maximum block gas limit. It also secures, owns and controls all DMD diamond blockchain contracts.
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