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Governance Model

Exploring the decentralized governance structure of Cypher's PoE network

Last updated: 2024-03-20

Governance Model Overview

The Governance Model of the Proof of Engagement (PoE) blockchain ensures a decentralized, inclusive, and participatory approach to network governance, emphasizing stakeholder engagement and active participation.

Decentralized Governance Structure

The PoE blockchain introduces a governance framework that decentralizes authority and decision-making power, distributing it among a diverse array of network participants.

Role of Nodes in Governance

Each node's governance weight is calculated based on both stake and engagement:

GovernanceWeight(i) = δ·Stake(i) + ϕ·EngagementScore(i)

Where:

  • • GovernanceWeight(i): Weight of node i in governance decisions
  • • Stake(i): Stake amount of node i
  • • EngagementScore(i): Node's engagement quantification
  • • δ, ϕ: Coefficients balancing stake vs engagement importance

Decision-Making Processes

Proposal and Voting Mechanism

Proposals can be submitted by any node, with progression to voting requiring a threshold of preliminary support measured in governance weight.

Outcome = { Approved if ∑(i=1 to N) VoteWeight(i) > ApprovalThreshold Rejected otherwise }

Where:

  • • VoteWeight(i): Weight of vote cast by node i
  • • ApprovalThreshold: Required metric for proposal approval

Community Involvement

Incentivizing Participation

  • Token rewards for governance participation
  • Wide representation of interests
  • Active stakeholder engagement

Feedback and Iteration

  • Community forums and polls
  • Iterative improvement process
  • Interactive platforms for engagement

Conclusion

The Governance Model of the Proof of Engagement (PoE) blockchain represents an innovative approach to decentralized network governance. By integrating engagement directly into the decision-making process and incentivizing broad community participation, PoE establishes a framework that is both inclusive and effective. This model enhances the network's adaptability and resilience while aligning closely with the principles of decentralized autonomy and stakeholder empowerment.