Decred’s Governance System Goes Live, $21 Million Crypto Treasury is in the Hands of Stakeholders

Decred’s Governance System Goes Live, $21 Million Crypto Treasury is in the Hands of Stakeholders

According to a blog post from Decred, its proposal system Politeia goes into production on mainnet, a project that has been ongoing for 18 months.

Politeia is a proposal decision-making system and is designed to serve as the ideal self-governance infrastructure. The launch leaves stakeholders with a big responsibility and in charge of more than $20 million in DCR. The goal is to increase community autonomy and to approach its long-term goal of decentralised sovereignty.

The proposal system goes one step further than most cryptocurrencies by using a governance model that allows the stakeholders to approve or reject governance proposals such as budgetary expenditures, development of software features, marketing plans, and higher-level policy decisions such as constitutional amendments. Before Politeia, the $20-million treasury account, or 570,000 DCR, was under the control of Decred’s development organisation. Now, stakeholders have the power to disburse those funds according to the results of voting.

However, Jake Yocom-Piatt, Decred Project Lead states some words of caution. Up until now, the company has been very conservative in their spendings and have only spent 2,8 million U.S. Dollars since February 2016. Jake Yocom-Piatt says that the effect of making the stakeholders in charge can result in very positive outcomes but can if used unwisely, lead to a wide variety of problems.

“If stakeholders exercise bad judgment, it can have serious negative consequences, so I am sharing my experiences and observations as the custodian of the Treasury to date, in an attempt to inform our stakeholders about the potential hazards of this role. In the remainder of this entry, I will discuss a variety of topics related to managing the Treasury.”

Politeia enables holders of the token a way to exercise control over every aspect of the project. Even though some unwise decisions could be made, Jake has a veto right for six to twelve months, but when control moves from Decred Holdings Group LLC to a smart contract, his veto right disappears.

Jake is very excited about the users participating in managing the treasury and adds that there will be many surprises along the way.

“Now that the Decred stakeholders can participate in managing the Treasury, we can expand the scope of our work and engage more meaningfully with our users. There will surely be surprises along the way, so expect the unexpected and stay vigilant”.

Many predictions have been made over the months, and two months ago, researches outlined predictions for several cryptocurrencies, and Decred were among them. Decred is forecasted to reach $535 over the coming five years. This would be a major increase from the current price around $39.

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