Today the recent Goverance Proposal was implemented.

This means voting on proposals is now financially rewarded in bi-weekly intervals, sourced from the DAO treasury. Also, validators can now vote onbehalf of their delegators unless they revoke the permission to vote for themselves.

This is an important change to increase the participation rate in the governance process. Here is why its so significant:

Commune is fully community driven. Ever since the DAO has been implemented, every update to the protocol has been executed through passing a proposal. Almost all proposals were submitted by community members like us.

How fast an proposal gets approved or rejected is how fast everyone can move forward. Its like a clock for the ecoststem, and if it ticks faster things can move faster. So this update should increase the speed of progress by reducing the waittime for proposals, giving everyone earlier clarity to plan their next steps and contributors earlier permission to execute their ideas. We at CommuneX know for sure that this will enable us to work more efficiently.

Here is how the Governance incentives work:

First of all, the reward calculation is quadratic, meaning smaller holders get more rewards per vote than larger holders, making it worthwhile for holders of any size to participate. Small holders might feel insignificant, but together they make up the majority! So giving them a disproportionate amount of the voting incentives will stimulate their participation.

Every new proposal within an interval add an amount to the reward pool, but the added amount diminishes with each additional proposal to avoid incentive to spam.

The share of total votes (1 token = 1 vote) across proposals a key has, is its share of the reward pool. Note that the votes are calculated quadratic as described earlier, meaning the more votes you have the less each additional vote is going to increase your rewards.

For a more technical description, see the proposal

The result should be a more agile DAO with increased participation rate, an important improvement that allows Commune to move faster, increasing the protocol velocity.

Lets move move faster.

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