January 3, 2022
 min read

Explanation of Democracy Pallet and on-chain governance for Kusari

The democracy pallet shifts the power from the developers to the hodlers of KUSARI

KUSARI uses a sophisticated governance system that empowers the community to proactively shape the future of our chain.

The democracy functionality (also known as the democracy pallet) enables truly decentralized governance and allows for KUSARI to stay relevant and quickly adapt to the fast-paced innovations of DeFi and the crypto space in general.

Thanks to our substrate-based blockchain and its modular configuration, all changes invoked by the community via the democracy pallet can be implemented on the fly with no forks needed. These changes can range from a simple enlargement of the active set of validators up to swapping the entire runtime logic (which in its consequence would be equivalent to a classic hard fork).

The democracy pallet shifts the power from the developers to the hodlers of KUSARI and it’s designed to always guarantee that the majority of stake can direct the blockchain.
To structure and facilitate the power, the democracy pallet introduces three distinctive governmental bodies: The council, the referendum chamber, and the technical committee, whereas the council and the technical committee can influence how a proposed change goes to a referendum.

Every KSI hodler is free and has the same opportunity to candidate and become a member of the Council. Automated selection algorithms eliminate subjective influence in the election process and therefore guarantee an equal and fair playing field. Every KSI hodler can propose any change by creating an on-chain proposal, visible for everyone on our substrate explorer. If the hodler is not part of any governmental body, the proposal is considered a public proposal and enters the public queue.

Hodlers who share the need for importance of the proposed change can back it up by seconding the proposal. The most seconded public proposals will become referenda. The referenda then enter the referendum chamber and are subject to voting. Every hodler can express its opinion by voting either aye (yes), nay (no), or contain within a certain period of time.

The council exists to represent passive stakeholders and it preserves a separate proposal queue, transparent to the public. Besides normal proposals and special Council proposals (like canceling slashes), the Council also has access to the treasury. The Council can make and pass proposals to spend the treasury for developers, community engagement, or more complex activities.
When the Council votes on its own proposals, votes are counted by members, not by stake. This makes it difficult for large holders to exercise undue power in KUSARIs governance; they may be able to get themselves on the Council, but they can’t swing a low-turnout referendum.

The Technical Committee serves as KUSARIs last line of defense against software errors. The Technical Committee cannot make proposals themselves, but can fast-track existing proposals to happen in a shorter time frame than normal. Although the Technical Committee is not elected but rather chosen by the Council, they have a limited scope, and the proposals that they fast track still need to go through a public referendum. They can only make governance for critical bug fixes happen faster than normal, but cannot control the network.

Interested to see how community governance can work in Blockchain?

Get first-hand experience here by seconding a proposal: https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fws.kusari.network#/democracy

"In order to be able to think, you have to risk being offensive." - Jordan B. Peterson

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