In our previous post, we detailed the key role of the $KAVA token, which not only secures the network through staking but also gives its owners the right to vote in project management. But how exactly does it work? Who makes decisions in a decentralized world where there is no single boss? Today, we will delve into one of the most interesting topics – on-chain governance, or as it is called in the crypto community – on-chain governance. 🌐
Imagine like a big city. Every token holder is its citizen. And, like in a real democracy, every citizen has the right to vote. The Kava governance system is built in such a way that any token holder can create proposals or vote on existing ones. These can be a variety of issues: from making changes to the technical parameters of the network and updating the protocol to allocating funds from the treasury to finance new projects. This makes Kava a truly community-driven, not a centralized group. How does voting work? It's pretty simple. When someone submits a proposal, a voting period begins. Holders of $ may vote "For" or "Against", or "Abstain". The number of votes a user has is directly proportional to the number of $KAVA tokens they have staked. The more tokens, the more important your vote.
Another important feature is the ability to delegate your vote. If you don't want to delve into the technical details of each proposal every time, you can entrust your vote to one of the validators (network operators) who, in your opinion, represent your interests best. Validators are "representatives" who professionally deal with network issues, and you can transfer your voting power to them so that they vote on your behalf. This allows those who are less involved to still have their influence on the future.
This is exactly the mechanism that makes Kava stable and decentralized. It ensures transparency and guarantees that important decisions are made collectively, which is a fundamental principle of blockchain technology. Each owner of $KAVA has a real impact on the development of the project.
If you strive not just to watch the world of crypto, but to become an active participant in it and influence the development of technology, subscribe to me @Imy191Man on Binance Square and on the X network. Together, we analyze the key aspects of Kava that give you the knowledge to make informed decisions. 🚀
We have already figured out who manages Kava. But what applications and add-ons work on this unique hybrid platform? And how do they use its advantages? We'll talk about it tomorrow! Don't miss it! 😉