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The development team behind Polygon has proposed an overhaul to its existing ecosystem's governance framework, Governance 2.0, as part of forward-looking changes that will enable it to unlock a greater degree of decentralized control while supporting zero-knowledge (ZK) powered layer two chains under its hood.
Prioritizing decentralized decision-making and active community involvement
In a July 19 blog post, developers of the Ethereum scaling solution set forth a restructuring plan that revolves around three main pillars centered on the governance aspect of its core protocol, smart contracts execution and community treasury governance.
“The proposal is inspired by battle-tested blockchain governance models, with Ethereum’s foremost among them,” the Polygon team said. “The community has full control over the Polygon network and will have the final say.”
Polygon Labs said it shaped specific aspects of “Polygon 2.0: Governance” based on feedback received on the components of the proposed governance vision. The new governance structure will markedly result in the establishment of an ‘Ecosystem Council' and the adoption of a more community-based funding mechanism.
The first pillar pertains expansion of the Polygon Improvement Proposal (PIP) framework to accommodate all blockchains and applications that run on the network. The approach, currently operational on the Proof of Stake chain, will allow community members to discuss and make contributions to upgrades that cover the entire permissionless stack. This is aimed at increasing participation in protocol research and development.
System Smart Contracts
The second pillar seeks to simplify the implementation of upgrade protocol components at the smart contract level, which presently requires governance of the process itself. If approved, a group of reputed members elected and governed by the community would form the Ecosystem Council responsible for oversight of changes to system smart contracts.
The specifics on the process of migration to the interim council to kickstart the evolution will be submitted as an improvement proposal soon, the team said. The council's activity, including the description and the lifecycle details of upgrade transactions, will be visible through an Ecosystem Council Transparency dashboard to be launched in the coming days.
The last pillar focuses on governance and entails entrusting an independent Community Treasury Board to manage Polygon's growth and ecosystem funds in the initial stage. The developers envision a self-sustainable fund as the eventual stop, and as such, the pillar will be evolved as community-driven governance.
“This initial phase will be characterized by efficient, strategic, and goal-oriented execution of funding in various tracks. The initial board responsible for operationalizing this vision, will be selected alongside and from among Polygon community members […] The second phase would introduce explicit community decision-making over the Treasury Board and the Treasury, facilitated by novel governance mechanisms.”
The two-phase treasury will handle duties related to supporting ecosystem projects, such as funding public goods. Polygon encouraged its community consisting of developers, network validators, and other participants to review the same.
To learn more about Polygon, check out our Investing in Polygon guide.
Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.