KEY TAKEAWAYS
- Taiko DAO launches a decentralized onchain governance model, enhancing protocol governance towards full decentralization.
- The governance model includes an optimistic approach with token holders having onchain veto rights and a Security Council for protocol upgrades.
- Taiko’s governance system, inspired by Polygon, features multi-threshold upgrades and encrypted emergency proposals to ensure security and efficiency.
- The Taiko Governance Hub allows token holders to delegate veto power, fostering community engagement and feedback before mainnet deployment.
Taiko DAO has announced the launch of its decentralized and security-focused onchain governance design, marking a significant milestone in its governance roadmap. This development aims to advance Taiko’s protocol governance towards full decentralization.
The new governance model, described as optimistic, grants token holders onchain veto rights. It features a Security Council capable of proposing protocol upgrades efficiently and securely. The model also includes multi-threshold protocol upgrades with both standard and emergency proposal paths, alongside encrypted emergency proposals. Token holders have the option to delegate their veto power, consolidating the governance process within the Taiko Governance Hub.
Optimistic Governance and Security Measures
Taiko, an Ethereum-equivalent zkEVM-based rollup, operates as an open and permissionless system. It relies on Ethereum validators for security, eliminating the need for additional trust assumptions. The protocol’s optimistic governance model facilitates a streamlined decision-making process, balancing efficiency with community oversight. Token holders can veto malicious proposals or exit if necessary. Proposals that do not gather enough votes by the end of the veto period are automatically executed after a seven-day timelock.
The governance model also incorporates multi-threshold protocol upgrades inspired by Polygon. The Security Council, comprising eight members, can propose upgrades through two tracks: standard and emergency. Standard proposals require three out of eight approvals and undergo a community review period. Emergency proposals, used in critical situations, require a supermajority of six approvals and are encrypted to prevent exploitation before implementation.
Community Engagement and Future Developments
The Taiko Governance Hub serves as the central platform for submitting and reviewing proposals. Token holders can delegate their veto power or participate directly in the governance process. The Taiko DAO is currently live on the Hekla testnet for testing, allowing voters to influence the development of Taiko’s infrastructure. Feedback is encouraged before the mainnet deployment.
Taiko’s commitment to decentralization aligns with Ethereum’s core values, emphasizing permissionlessness and trust minimization. The DAO aims to meet L2Beat’s Stage 1 criteria upon mainnet launch, utilizing Aragon’s governance solutions to balance decentralization with security considerations.
For more details, the announcement can be found here.
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