{"id":256298,"date":"2021-05-22T11:17:00","date_gmt":"2021-05-22T08:17:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/decentralized-parties-the-future-of-on-chain-governance\/"},"modified":"2021-05-22T11:17:00","modified_gmt":"2021-05-22T08:17:00","slug":"decentralized-parties-the-future-of-on-chain-governance","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/decentralized-parties-the-future-of-on-chain-governance\/","title":{"rendered":"#Decentralized parties: The future of on-chain governance"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3cac9d77336\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3cac9d77336\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/decentralized-parties-the-future-of-on-chain-governance\/#DAOs_A_bit_of_context\" >DAOs: A bit of context<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/decentralized-parties-the-future-of-on-chain-governance\/#Disrupting_the_political_system\" >Disrupting the political system<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/decentralized-parties-the-future-of-on-chain-governance\/#Is_decentralization_of_power_the_future\" >Is decentralization of power the future?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Decentralized parties: The future of on-chain governance<\/strong>&#8221;<\/p>\n<p style=\"float:right;margin:0 0 10px 15px;width:240px\"><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvMjNjNGRhOTMtZmM1OS00MzA1LWI5MTEtNTQ0MWI1ZGI2OTM3LmpwZw==.jpg\" class=\"type:primaryImage\"><\/p>\n<pre><code>                The idea of a decentralized government, formed by competing decentralized parties, would be a generational landmark in human evolution.\n                &lt;p&gt;Decentralized governance, a facet of decentralized autonomous organizations (DAOs), is perhaps the most valuable <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication smart contracts could bring to humanity. DAOs can be thought of as living organisms on the internet, entities that would function autonomously according to distributed consensus mechanisms.\n<\/code><\/pre>\n<p>Managed by a community through voting, DAOs are self-governing systems with a built-in treasury. Although they still depend on community members for certain tasks \u2014 offering an economic incentive from the liquidity pool in return \u2014 DAOs are almost entirely automated.<\/p>\n<p>Despite their potential, DAOs do not rank among the most popular decentralized technologies. Perhaps their reputation hasn\u2019t fully recovered from a 2016 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2016\/06\/18\/business\/dealbook\/hacker-may-have-removed-more-than-50-million-from-experimental-cybercurrency-project.html\">hack<\/a>: The first decentralized venture capital fund \u2014 known as \u201cThe DAO\u201d \u2014 was compromised, causing the fork of the Ethereum blockchain and subsequent creation of Ethereum Classic (ETC).<\/p>\n<p>But what many may not know is that the various yield farming protocols, nonfungible token platforms and decentralized exchanges we see today are dependent on DAOs for governance. A new breed of self-governing organizations is likely to take over in the upcoming decades, not only in business but also in the political sphere via decentralized parties.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Decentralized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> can help protect democracy around the globe<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"DAOs_A_bit_of_context\"><\/span>DAOs: A bit of context<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Decentralization is measured on a spectrum. Some maximalists suggest the decentralized governance of Bitcoin (BTC) itself is enough to be considered a DAO. However, the term wasn\u2019t officially <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/@VitalikButerin\/i-invented-the-term-in-2013-and-daniel-larimer-came-up-with-dacs-s-organization-corporation-a-ef86db1524d5\">introduced<\/a> until 2013 by Daniel Larimer and only came to fruition years later with Dash.<\/p>\n<p>One of the most active DAOs today, Dash was the first protocol to establish decision-making on top of a blockchain consensus protocol. Back in 2015, the Dash Foundation decided to create a pool consisting of 10% of the mining rewards to foster the growth of the network. <\/p>\n<p>Even though there are now several forms of decentralized governance, DAOs are mainly used to vote on protocol upgrades and the allocation of pool funds. They have yet to step out of the crypto bubble and transform the decision-making process in the real world. That is where the real potential of DAOs lies, in making democracy not only fairer but also more flexible and efficient.<\/p>\n<p>Last month, a ground-breaking new law was passed in Wyoming, effectively <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/legiscan.com\/WY\/bill\/SF0038\/2021\">recognizing<\/a> DAOs as limited liability corporations (LLCs). As regulation catches up to technology, we may see these LLC DAOs progressively introduce decentralization into businesses and organizations. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Disrupting_the_political_system\"><\/span>Disrupting the political system<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Political decentralization is the only way citizens can have a definitive say in the governance of their communities and lives. The desire for change in the political landscape is palpable and reflected in the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.idea.int\/sites\/default\/files\/publications\/addressing-youth-absenteeism-in-european-elections.pdf\">growing<\/a> voter absenteeism in many nations. Though decentralized parties will initially lack political influence, the craving for empowering technologies and purer forms of democracy will stimulate adoption over time.<\/p>\n<p>The elimination of centralized power authorities would help protect citizens from government overreach and corruption, reduce bureaucracy and improve the speed at which laws and policies are passed.<\/p>\n<p>We can use blockchain technology to help improve the voting process. Blockchain voting systems are currently being tested by several nations worldwide and have already been used in the United States: in West Virginia during the 2018 midterm elections and in Utah during the 2020 presidential <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.govtech.com\/products\/utah-county-makes-history-with-presidential-blockchain-vote.html\">election<\/a>. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Blockchain voting is the alternative for trusted democratic elections<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_decentralization_of_power_the_future\"><\/span>Is decentralization of power the future?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>But what if distributed ledger technologies could do more than just improve voting systems? What if they could elevate democracy to a new level, creating a self-governance system where everyone would have a say? <\/p>\n<p>That is the dormant potential of decentralized parties: to take down the hierarchical structure and bring a paradigm shift to the political system.<\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"padding: 10px\"><strong>Andrey Sergeenkov<\/strong> is an independent researcher, analyst and writer in the cryptocurrency space. As a firm supporter of blockchain technology and a decentralized world, he believes that the world craves such decentralization in government, society and business. He is the founder of BTC Peers, an independent <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> outlet.<\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/decentralized-parties-the-future-of-on-chain-governance\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Decentralized parties: The future of on-chain governance&#8221; The idea of a decentralized government, formed by competing decentralized parties, would be a generational landmark in human evolution. &lt;p&gt;Decentralized governance, a facet of decentralized autonomous organizations (DAOs), is perhaps the most valuable application smart contracts could bring to humanity. DAOs can be thought of as living organisms&#8230;<\/p>\n","protected":false},"author":1,"featured_media":256299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvMjNjNGRhOTMtZmM1OS00MzA1LWI5MTEtNTQ0MWI1ZGI2OTM3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-256298","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/256298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=256298"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/256298\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/256299"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=256298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=256298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=256298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}