Blockchain
Twelve of the top 50 cryptocurrencies ranked by market capitalization have implemented on-chain governance. They include DOT, ATOM, UNI, TON, ICP, LIDO, APT, ALGO, FTM, AAVE and EOS. In a tweet, Justin Bons, founder and CIO of Cyber Capital, congratulated the networks for praising them for such an important achievement.
Credit where credit is due, from the top fifty cryptocurrencies by market capitalization;
Twelve have implemented on-chain governance: #DOT, #ATOM, #UNI, #TON, #ICP, #LIDO, #APT, #ALGO, #FTM, #AAVE & #EOS
Congratulations, the future is now; adopt governance to support decentralization!
— Justin Bons (@Justin_Bons) May 15, 2023
On-chain governance is the basis for decentralization and requires coding the rules for making changes to blockchain protocols. It empowers the community and uses smart contracts to organize the governance process of blockchain networks. Under such arrangements, developers propose changes during updates, and each node votes on whether or not to accept the change.
In response to Bons’ tweet, Joel Valenzuela, a self-proclaimed crypto ambassador, recognized the implementation by the twelve cryptos as an essential first step. However, he notes that implementing on-chain governance is not enough. According to him, the implementation should be ‘good’ governance and the community should ensure that it is updated.
Valenzuela said, “That’s not even enough. It must be GOOD governance, and even then the community must ensure that it is put into practice. But it is an essential first step!”
Bons went on to explain that even good governance alone would not be enough to achieve true decentralization. According to him, the implementation must be sufficiently scalable. Otherwise, the chains that implement on-chain governance can easily become corrupted.
Bons’ tweet only caught the cryptos in the top 50 by market cap. There may be other cryptocurrencies outside this category that have implemented on-chain governance. According to Valenzuela, DASH, which seems to be his cryptocurrency of choice, is one of those cryptos that runs on-chain governance despite falling out of the top 50 cryptos based on CoinmarketCap’s ranking.
With a market cap of $478.8 million, DASH was ranked 86th on CoinMarketCap at the time of writing.
