Politeia, the democratic governance voting system, has gone live, meaning that participants in the Decred network are to vote on how to spend a development budget of USD 28 Million (578,000 DCR). Politeia allows users and stakeholders to propose, discuss, and fund new project and initiatives.
Politeia – a pure governance system
Decred is arguably one of few truly democratic coins. In the bitcoin ecosystem, decentralized as it is, the miners have tremendous power, as well as the core developers. Others, such as Ethereum and Tron, are based on Vitalik Buterin and Justin Sun as figureheads to rally around. With Decred, those with more coins have more voting power, similar to a POS system.
The network was launched in 2016, and the funds have accrued since this date. The team has been very frugal regarding expenditure, unlike other networks such as DASH that has come under criticism for high spending with little returns. Decred has no pre-mine or founders fees, with everybody starting off on an equal footing. Politeia is a Greek word with a range of meanings, from “the rights of citizens” to “a form of government.” It can also be interpreted as “the conditions and rights of the citizen.”
However, the Politeia process is still not automated, and the development team is still the gatekeeper – “We are still the gatekeepers,” indicates lead developer Marco Peereboom. “Something stupid is going to happen. It’s just inherent.” Disasters in the world of cryptocurrency occur all too often, one of the most notable being the DAO collapse which resulted in an Ethereum fork.
What is Decred?
Decred is more of an organizational structure than just a cryptocurrency. Its governance model is designed to prevent a hard fork, and it is built around a democratic principle of fair governance above all else. Decred uses a hybrid POW/POS consensus mechanism, and its blockchain is designed to be censorship resistant. It also claims to have smart contracts that work much like the Lightning Network and to provide cross-chain atomic swaps between different currencies. Decred is a strong proponent of the decentralized exchange, and the community has the tools to build one with an atomic swap toolkit and Politeia file system.
Decred, like many other development communities, wants to exert a positive influence on wider society with its democratic governance model and frugal spending habits. An interesting contrast is made between Decred, with its human-centric voting approach, and Ethereum, with its smart contract model. According to Peereboom –
“What we’re trying to get to is a sovereign entity…Where there are no jurisdictions, only individuals who can vote on where it’s going next. That vision of a distributed, human-run entity has so far been overshadowed by the sci-fi glitz of Ethereum’s automated smart contracts, but might prove just as transformative—and maybe a little more resilient.”
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.