Press "Enter" to skip to content

How Telos Governance is Leading Other Blockchains

Decentralized governance is one of the benefits that blockchain technology has ushered in. Over the years, governance on blockchains has evolved from a select few being in charge to the whole community deciding what projects should be executed or how the Community treasury should be spent. The same governance model is also adopted in decentralized autonomous organizations or DAOs where the opinion of every member counts, unlike a centralized setting where power resides in the wealthy or people of status.

In some blockchains, the governance model is such that only miners (for proof-of-work blockchains like Bitcoin’s) or validators (in proof-of-stake blockchains) are allowed to decide what changes or upgrades will be integrated into the protocols. This governance model is mostly evident in networks running on the PoW consensus. While this may be considered the best model for blockchains with such infrastructure due to the efforts miners put in, it does not factor in the whole community or rather holders of whatever cryptocurrency is powering such blockchain. Given this scenario, it is very likely that miners being the ‘gatekeepers’ agree on decisions that do not settle well with the Bitcoin community.

Moving on, governance on third-generation and scalable blockchain Telos utilizes a different model Delegated Proof-of-Stake which prefers to involve token holders in decision-making processes. As such, Telos’ native token TLOS is a core part of the blockchain given its utility. Apart from being useful for staking to earn rewards, TLOS helps holders in participating to secure the Telos network. Holders deposit their tokens with registered validators. In the course of reward distribution, validators charged ‘delegates’ commissions on the rewards. Holders delegate their TLOS tokens to these validators, hence the term Delegated Proof-of-Stake (DPOS).

The governance process on Telos is done through an app ‘Decide’ which has both an Android and iOS version. Essentially, TLOS token holders can participate in drafting and voting on proposals. Rules for the blockchain are usually written in system core contracts. A change in these rules requires a strict code review, the consensus of block producers and lastly governance consensus- it is at this stage that TLOS token holders get involved by staking their tokens in support or opposition of any change.

What distinguishes Telos governance model from others is the allowance it gives to other projects to utilize its governance engine. Telos even allows other blockchains to utilize its governance engine, thereby enabling a blockmesh ecosystem. In this case, third parties using the engine do not have to develop their voting system. Telos is championing the tenets of blockchain technology through this model.

Why Telos Governance Model is Better Than Tezos’

Comparing Telos governance model with that of another blockchain Tezos, one would realize that they share similarities. First, they were launched in the same year, though Tezos emerged earlier. Secondly, the two blockchains are community-oriented, meaning priority is given to token holders during voting processes. However, there are still differences.

Proposed amendments on the Tezos blockchain are usually in the form of executable core code and the users have to vote on them. The outcome of each voting process is implemented immediately into the protocol’s core code. On its part, Telos allows users to vote but outcomes are implemented and executed by developers and block producers. Highlighting their differences, while Telos is inclusive in the sense that it considers voters who are not conversant with programming language plus implementation is delayed so they can understand each outcome; Tezos requires users to bank on the interpretation given by programmers.

Telos blockchain has proven itself as a leading blockchain with support for a democratic governance model where the opinions of token holders are held in high esteem in effecting changes on the protocol. Allowing other protocols to use its governance engine is something no other blockchain has ever done.

Be First to Comment

Leave a Reply

Your email address will not be published.