Introducing MuesliSwap On-Chain Governance on Cardano
Blockchain technology is rapidly evolving, and with it, the need for effective on-chain governance is becoming increasingly crucial.
Blockchain technology is rapidly evolving, and with it, the need for effective on-chain governance is becoming increasingly crucial. In the world of decentralized protocols, balancing decentralization, security, and efficiency is a complex challenge. Today, we’re excited to delve into MuesliSwap’s latest innovation in this field: our On-Chain Governance Platform designed for the Cardano Blockchain.
The MuesliSwap On-Chain Governance is a major step towards moving MuesliSwap into a fully decentralized DAO structure. It has been supported by Catalyst Fund 10 (see proposal here) and will be launched in 2024.
What is On-Chain Governance?
On-chain governance is a system where decision-making processes of a decentralized protocol are embedded in the blockchain itself. This approach ensures transparency, security, and democratic management, allowing token holders to directly participate in governance. The benefits of embedding the decision-making on-chain are, among others:
- Enforcement of decisions: Decisions on-chain can have consequences that can be executed using smart contracts.
- Transparency: All decisions and votes are publicly submitted to the chain and can be assessed by anyone
- Immutability: Decisions are as immutable as the blockchain itself ensuring their endurance.
MuesliSwap’s On-Chain Governance Platform: An Overview
Our platform is a blend of smart contracts on the Cardano blockchain, facilitating control over funds and protocol parameters of MuesliSwap’s treasury and decentralized exchange. It complements our existing governance forum and off-chain voting platform, enhancing both security and user participation.
Key Features and Design Principles
- Transparency and Verifiability: All interactions occur via Cardano blockchain transactions, visible and verifiable by all users.
- Modularity: The platform focuses on vote tallying, while allowing other contracts to handle the effects of the voting process. This allows extension of the effects of the Smart Contract in the future.
- Enhanced User Participation: We aim to minimize token lock-up time and costs, exploring features like vote delegation and staking.
Platform Architecture
The platform consists of a Governance contract for tracking proposals and votes, a Staking contract for locking funds during voting, and a Treasury contract for managing funds based on voting outcomes.
The Governance contract ensures that tallies are only created with allowed parameters as defined in a Governance State. This includes features like minimum quora and minimum time until a vote can conclude for extra security.
The Staking contract locks user funds to ensure that funds can not be double counted for any votes. Funds may be locked for a minimum time, from the beginning of the vote until after its end, or locked indefinitely to ease participation. By using a separate Staking contract, we enable the participation in several parallel ongoing proposals and thus ensure scalability of the governance protocol.
Comparative Analysis
We explored various governance models on Cardano and other blockchains, learning valuable lessons. Our platform’s unique approach addresses the need for enforceable on-chain effects and robust governance mechanisms, including spam protection and verifiability on chain, setting a new standard in the blockchain governance landscape.
Integration Plan
The new on-chain platform will be integrated alongside the existing off-chain governance infrastructure, with a dedicated user interface and backend. The on-chain platform will thus complement the existing off-chain governance for critical governance votes.
Further technical details about the project can be found in the detailed technical report that can be accessed in the public repository that details the entire project.
https://github.com/MuesliSwapTeam/muesliswap-onchain-governance
The MuesliSwap On-Chain Governance platform represents a significant step forward in blockchain governance. By enabling MILK token holders to participate directly in the decision-making process, we’re fostering a more democratic, transparent, and efficient environment. This platform is not just a boon for the MuesliSwap community; it’s a pioneering model for the broader blockchain world.
Do you have any comments or feedback on the proposed platform? Feel free to comment this article or reach out via Discord or Twitter and let us know about your opinions.
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