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Governance is one of the hottest topics in the dapp ecosystem because it empowers users and gives them a say in the future of a particular dapp. Holding the dapp native governance token empowers users as it gives them access to community discussion boards, proposal systems, and voting rights.
Blockchain technology allows people to build autonomous protocols on distributed systems. Moreover, these pieces of software on the blockchain – also called dapps – are often designed by communities from all over the world. Because there’s no centralized authority behind them, decentralized governance is essential to introduce decision-making. Token holders get to suggest, debate, and potentially add to a service, game or dapp.
There isn’t a single set of rules on how to create governance models, but token holders will need to put their tokens to use to make it work. Creating proposals can come with a fee, while voting can result in a timed lock-up period. Other governance models add weight to someone’s vote based on the amount of tokens they are holding. Each of these mechanics come with their positives and negatives.
Governance technology stack
While the tools with which a community doverns their dapps can vary, it is possible to generalize things. For example, discussions take place on Discord, a social media tool for community management. Projects can use bots to lock certain areas that are exclusive to token holders. They can then use Snapshot to allow the token holders to vote on a decision. The community can then use Gnosis Safe to manage the treasury and pay for costs coming from that vote, such as development, marketing or content creation. Furthermore, Trello or Notion are common examples of tools that track and manage the development progress.
With Discord, Snapshot and Gnosis we have already mentioned 3 tools that are part of the technology stack needed for governance in a decentralized ecosystem. It allows community members to discuss, vote and manage community treasuries. However, it’s important to note that the technology stack for every ecosystem or community can be different. There’s no such thing as one size fits all.
How to get involved in governance
Governance is a very interesting and empowering concept. Holding SUSHI tokens can gets you a place at the table to discuss the future of SushiSwap, while MANA gives you a say in the virtual world of Decentraland. But participating in governance doesn’t end with simply holding tokens, it only begins there.
When you acquire tokens, you’re just getting ready to participate in governance. That’s where the social part of DAOs, decentralized autonomous organizations, comes into play. These decentralized communities need this social part to discuss, educate and create new ideas. As a community member you will need to participate in those discussions. This means that you’re not only making your tokens do their work in a vote. When you’re truly passionate about a community your voice will matter as well.
DappRadar will introduce RADAR
This December DappRadar, the World’s Dapp Store, will launch the RADAR token, the utility token that rewards users for their contribution. In addition RADAR will give users influence on future decisions through community votes. DappRadar aims to become a community-curated project and the token plays an important role in that.
