Governance Roles in Polkadot & Cardano Ecosystems
Governance plays a crucial role in shaping the future of blockchain ecosystems. Governance must be considered and should be implemented if the project is to be truly decentralized.
Polkadot and Cardano, two prominent blockchain platforms, have implemented unique governance models that empower their communities to participate in decision-making processes. This article explores the various governance roles within these ecosystems, providing a high-level overview of their functions and responsibilities.
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Polkadot Governance Roles
Polkadot’s governance model is designed to encourage community participation and ensure the network's long-term sustainability. It already levolved from the V1 into the present V2 model called the OpenGov, which removed previous centralizing elements such as the Council or Technical Committee.
There are a few main roles in the Polkadot governance system — voters, delegates, and Decentralized Voices so let's dive into them.
Voters
The foundation of Polkadot’s governance is its voters. These individuals or collectives hold DOT tokens and can directly participate in on-chain voting on proposals.
Voters can choose to vote with all or part of their funds. They can also pick a conviction on which they want to multiply the value of their vote by locking it for a longer period, up to 6x value, which locks the DOT used to vote for 7.5 months. The 0.1x conviction, on the other hand, doesn’t block DOT at all.
Delegates
Voters can delegate their voting power to trusted representatives known as delegates. Delegates act on behalf of their electors, participating in governance activities and voting on proposals.
Decentralized Voices (DVs)
DVs are a special type of delegate selected by the Web3 Foundation and given exceptional voting rights. They represent different perspectives within the ecosystem and participate in governance discussions and decisions. They are temporary, while the delegation remains for 3 months and then the selection process for new DVs starts again.
Some other major governance roles in the Polkadot ecosystem worth mentioning are:
- Proposers: Proposers submit individual proposals for consideration by the community. These proposals can range from technical upgrades, changes in governance rules, or spending from the treasury.
- Bounty Curators: Bounty curators play a vital role in identifying and evaluating bounties within the Polkadot ecosystem. They help ensure that bounties are allocated fairly and effectively to incentivize contributions. There are several bounties in Polkadot focusing on marketing, infrastructure building, gaming adoption etc.
- Fellowships & Collectives: Polkadot supports various fellowships and collectives that focus on specific areas of the ecosystem. These groups contribute to research, development, and community engagement.
- Validators/Pool Operators: These individuals or entities secure the network by validating blocks and participating in consensus mechanisms. They also play a role in governance by voting on proposals and influencing the network’s direction, but compared to delegates, their power is limited to their own holdings.
Cardano Governance Bodies
Cardano’s governance model emphasizes decentralization and community involvement. It involves a combination of elected representatives and community-driven initiatives to ensure that the development of the ecosystem is aligned with the needs and preferences of its stakeholders.
Compared to Polkadot, Cardano has a slightly more comprehensive governance structure with 3 different bodies. With some kind of safeguards in decision-making, it’s somewhat reminiscent of the former Polkadot V1 governance structure with the Council and the Technical Committee.
The new governance structure will include a Constitutional Committee, Delegated Representatives (DReps) and Stake Pool Operators (SPOs) who will take over the responsibilities of the IOG and the Cardano Foundation. Governance actions will require the approval of at least two of the three governance bodies, with some critical actions, such as hard forks, requiring the approval of all three. This change aims to create a fully decentralized ecosystem, reducing the influence of any single entity over the network, but including one protective body. Let’s dive deeper into those governance bodies
Stake Pool Operators (SPOs)
SPOs play a dual role by securing the network through block production and participating in governance decisions with their funds and also the funds staked by ADA holders into their staking pool.
While SPOs can vote on most governance actions, they are excluded from key decisions like modifying protocol parameters and withdrawing ADA from the Treasury.
However, an SPO can register as a DRep to assume dual roles, participating in governance with two distinct delegations. This structure ensures that stake and voting power are managed independently, similar to Polkadot’s governance model.
Delegated Representatives (DReps)
DReps are registered individuals or entities, who vote on behalf of ADA holders, with their voting power determined by the amount of ADA delegated to them.
DReps have the most influential role in Cardano governance, as they can vote on all the actions, including initiating hard forks, modifying protocol parameters and withdrawing ADA from the Treasury. As mentioned before, even SPOs can become DReps.
DReps are expected to actively participate in governance, communicate with the community and make informed decisions. While the role carries significant responsibility, financial remuneration for DReps is still under discussion.
Constitution Committee (CC)
CCs are entities or a group of individuals who decide whether the governance action is in accordance with the Cardano Constitution. If it’s not, it won’t be approved. The CC participates in all types of governance actions, with the exception of those that directly affect the CC, such as the dismissal of a committee and the election of a new one. In such a case, only the other two bodies, i.e. DReps and SPOs, vote.
Members of the Constitution Committee:
- Cardano Atlantic Council — Adam Dean, Beatrice Anihiri, Mike Hornan, Jennifer Brito, Thiago Nunes, Richard McCracken
- Cardano Japan — Seira Yun, Hix, Shusuke Wakuda, Rena Oishi, Hideki Takeshi
- Eastern Cardano Council — Jo Allum, Mark Byers, Oscar Hong, Phil Lewis, Ha Nguyen, Yuki Oishi
- Input Output Global —a technology company behind the Cardano blockchain.
- Cardano Foundation — a non-profit organization responsible for overseeing the development and growth of Cardano.
- EMURGO — a commercial arm focused on building applications and services on the Cardano blockchain.
- Intersect — a member-based organization for the Cardano ecosystem, putting the community at the center of Cardano’s development
Responsibilities in the Cardano governance model
Here is the list of actions that each body can vote on. As mentioned above, all the bodies involved must agree on a specific referendum to be approved.
Cardano Constitution
Let’s also describe the Cardano Constitution for a better understanding of the Constitutional Committee and its focus. The Cardano Constitution aims to protect the fundamental characteristics of blockchain, including:
- decentralization,
- immutability,
- security,
- liveness,
- openness,
- permissionless access,
- long-term sustainability, and
- resistance to censorship.
The formulation of the Cardano Constitution is a work in progress with expected approval within the next 3 months.
Final Word
Both Polkadot and Cardano have established robust governance models that allow their communities to actively participate in shaping the future of their respective ecosystems.
Polkadot governance is already in the V2 version, called OpenGov, while Cardano will finally implement the long-awaited last phase of their roadmap, the Voltair era, in a few upcoming months.
Polkadot retains voting power solely for token holders, allowing them to delegate their voting power to more knowledgeable members of the community. They can also delegate their DOT to different people for each track — be it spending or system upgrades, to experts in each part.
Cardano relies on three different bodies, each with slightly different roles and powers, which check and complement each other.
By understanding the roles within these governance models, individuals can actively shape their blockchain progression. Ultimately, it’s the collective decision-making of token holders that will determine the success of Cardano and Polkadot — truly decentralized protocols where power rests with the community.
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