Governance
Introduction to blockchain governance and VeChain's implementation.
On-Chain Governance Overview
On-chain governance in blockchain refers to the process of making decisions in a decentralized and auditable way. This approach ensures transparency, allowing everyone to view proposals and audit outcomes.
VeChain's On-Chain Governance Implementation
VeChain leverages on-chain governance to encourage VET holders to get involved and make decisions on critical on-chain actions. The outcome will always require a human action to propagate the change. These actions can, for instance, be activating or not a new network upgrade, changing token emission parameters, gas rules or block rewards, or any technical or economic mechanics that can be implemented on the VeChainThor blockchain. Formal execution will happen on-chain through a transaction that can carry a proof, meaning that all required actions have been completed.
VeChain's on-chain governance process consists of three phases:
Decision making: creation of a Discourse discussion, and possibly also a VIP with all the details of the subject of a new voting.
Authorization: actual creation of the proposal by whitelisted accounts to safeguard on-chain governance against malicious activities.
Execution: off-chain mechanics to execute a proposal that has passed, ending in an on-chain transaction to track and notify that the change was executed.
Voters
Voting power is available to all VeChainThor Validators, as well as StarGate NFT holders or managers. The number of votes, the voting power, is determined by all the node tiers owned and managed.
For more details, refer to the VeVote documentation.
Some History
The governing body of VeChain, was originally a steering committee, which represented the balanced interests of all VeChainThor blockchain stakeholders. The steering committee has been deprecated, and decisions are in the hands of Node holders and Validators casting their votes on VeVote.
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