The Big Problem
In recent months and weeks, we have all been exposed to the absence of governance and what it looks like on a blockchain project. How would decisions be made? Who pays? How do we get funding? Who gets a say? The need for these questions to be answered becomes clear with the number on contentious hard forks and proposed splits we have had this year on just one project, Bitcoin. Close your eyes and imagine how different 2017 would have been if only a system for decision making had been built into the project codes from day one. Why is this important you might ask?
- It is important for the stability of investments
- The growth of the project
- Projects are able to channel resources to progressive ventures
- Investors have less opportunity to lose funds in errors created by sending coins to wrong addresses.
- Investors and users are spared huge losses or complex recovery process for mistakes made during hardforks
- Investors have reduced exposure to fraudulent/scam wallets
Masternodes, A Solution?
Hind sight they say it 20/20. When it comes to putting governance in place credit goes to the DASH team for putting a solution in place with the creation of MasterNodes. MasterNodes vote on budget proposals on the DASH blockchain. This is certainly an improvement on the complete absence of a decision making mechanism on many blockchain projects. It might even look like a fantastic idea when you think about it, this got me initially excited about DASH, however on closer examination you find that you need 1000 DASH (todays value $500,000.00) to own a MasterNode. This is clearly prohibitive for a lot of people especially those of us new to this space who do not own a stash of mined DASH or Bitcoins. However wonderful a good many newcomers would have to stand on the sideline and watch as decisions are made which they can not actively participate or vote on because they do not own MasterNodes. This solution though a great improvement when compare to zero governance, creates a class system within the community - those who can vote and those who can't. The gap between these two broad groups can potentially create disharmony within the community.
What if there was a project that got it right for you today? SmartCash (SMARTS) wins my vote on this. SmartCash has come up with what I consider to be the best governance a project could have for today.
SmartCash Governance - SMARTVOTING
Let me introduce you to a great solution for today and the days ahead, one that involves all holders of the coin without any form of discrimination. It's completely INCLUSIVE, a paraphrase from the SmartCash site says this of their governance.
All SmartCash users have a voice, from day one. SmartCash has governance that lets all users vote on the direction of the project. This means that each SmartCash Token is worth one vote, to keep it simple.
In practice this means that if you own one SMART, you get to participate in enhancements and funding to the network. To fully understand this, let's look at Block Rewards and how they are assigned on both projects.
SMARTS:
- Miners: 5%
- SmartRewards: 15% https://smartcash.cc/what-are-smartrewards/
- Community: 80% (to fund projects the community would like to pursue)
DASH:
- Miners: 45%
- Masternodes: 45%
- Project development: 10%
Taking a look at just the numbers you can see that the SmartCash project assigns a higher percentage of the funds to the community to spend - a decision decided on by 100% of the users. DASH on the other hand has just 10% and the decision on how or what to spend the funds on is left to MasterNode owners. To achieve this, the SmartCash project is organized through small teams called SmartHives. I will be covering more of this in my next article. If you are looking for a community centred project where you are valued and included and can potentially shape and influence the direction of projects positively, the answer is SmartCash.
If you would like to learn more about SmartCash please visit:
https://www.SmartCash.cc
- Nitego
My Smart address: SZuD6sbjBwToeYcuU6Td4MAqU5H5SWi9MJ
#SmartCash #Smart #Cryptocurrency #SmartVoting #SmartRewards #SmartHives