DeversiFi, the cutting-edge Layer 2 DeFi trading platform, has formally launched its widely anticipated DeversiFi governance token (DVF) network governance mechanism in a move aimed at empowering users to shape the future of Ethereum Layer 2.
DeFi investors that hold wallets of DVF tokens will now be able to stake the tokens through a new governance module, the number of tokens staked (known as xDVF) will attribute proportionate voting power.
This voting power will enable governance token users to participate in DVF governance – able to exercise their voting power on macro network policy as well as smaller technical decisions.
Macro network policy decisions could mean votes to change the protocol such as smart contract upgrades, treasury spending and multisig keyholder changes.
These protocol changes will be governed through a proposal system, in which community members can propose changes to the protocol – which undertake a discursive discussion phase on an online platform, with the proposal then put to a vote – conducted by any user holding xDVF tokens during the snapshot.
The whole community can vote, anyone holding xDVF on-chain, those with L2 balances of xDVF on DeversiFi and anyone with vested xDVF tokens inside a vesting contract.
If a proposal passes a vote it will be executed under the executive oversight of the DVF DAO council, with the council able to veto proposals as a safety net.
Smaller technical votes will also be a feature of the network’s governance, this applies to things like the continuous adjustment of several parameters related to the operation of Deversifi and the liquidity mining program. Each Sunday night at Midnight the dial values will be set for the following 7 days.
Ross Middleton, Chief Finance Officer at DeversiFi was keen to explain the new governance mechanism.
“DeversiFi is using a new type of setup for our governance flow, for the first time in the industry – xDVF (staked DVF) holders can vote on proposals from either layer 1 or layer 2.” Said the CFO.
“Once a proposal is passed via SafeSnap, which could be a treasury spending proposal or protocol change, it is trustlessly executed using the Reality.ETH oracle service,
“A committee of nine trusted community members is the final line of defence, and they can veto any proposal that is malicious. After a few months of stress testing the DVF governance process, this committee will be removed and the training wheels will truly be off!”
This is yet another exciting update from the leading DeFi Layer 2 trading platform, the network recently launched the first L2 Bridge in a project with Polygon (MATIC).
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