Near Governance Analysis

 

The terms "Technical Governance" and "Resource Governance" describe how the protocol is updated and how its resources are allocated. Bug fixes, system parameter updates, and larger-scale changes to the protocol's basic technology are all part of technical governance. The allocation of grant financing from community-initiated sources is a common example of resource governance (like the allocation provided to the foundation).

Because of the essential cooperation between possibly hundreds of different node operators all over the world, technical governance is particularly difficult. To participate in the most recent version of the network, each of those nodes must go through the upgrade process. Those who do not comply may find themselves (attempting to start) a new chain. As a result, it's critical that the upgrade goes smoothly and that the nodes affected accept the decisions made.

Design Principles for Governance

The following are the ways in which NEAR's key design principles apply to governance:

Usability: The governance process should be transparent and easy to comprehend. Simple and straightforward mechanisms for active involvement and voting (where applicable) should be in place. Governance should be effective and efficient in order to make choices swiftly and effectively. Stakeholders should have a strong enough voice to support the legitimacy of decisions and not leave or fork the platform.

Scalability: Governance should grow in tandem with the platform's extent and complexity, as well as the diversity of its stakeholders and the breadth of involvement.

Simplicity: The most reliable processes are generally the simplest, therefore good governance should avoid overengineering processes and recognise that human-to-human communication is frequently the most straightforward option.

Decentralization that lasts: Governance should facilitate involvement from the platform's entire range of stakeholders while also resisting capture by any of them over time.

It's critical that the governance structure strikes a balance between efficiency and resiliency. If a technical platform is to continue to evolve sufficiently to deliver the most value for its stakeholders, decisions must be made and implemented efficiently. However, the platform must ensure that it cannot be captured over time by a certain group of stakeholders.

Summary

The governance of NEAR is meant to allow for fast protocol improvement while also giving the community enough voice and supervision to secure the protocol's independence. Long-term objectives include combining community-led innovation with effective decision-making and execution, as well as receiving sufficient representation from each of the network's important stakeholder roles.

 

Token holders, validators, application developers, protocol developers, community leaders, and others are among the first members of the NEAR community. Each of these stakeholders has a unique set of perspectives, ideas, and contributions on a variety of crucial issues.

Having proper representation means that decisions will demand consideration and discussion, which, if left unchecked, will slow down the protocol's required progress. A highly qualified entity is required to maintain the Reference Implementation of core protocol code in order to maintain a bias for efficient execution. The community should choose and oversee this maintainer, who is known as the Reference Maintainer.

The NEAR Foundation, an independent nonprofit organisation whose aim is well-aligned with strengthening the ecosystem's long-term utility, will first manage governance efforts. These responsibilities include overseeing the Reference Maintainer, assisting in the development of governance coordination tools, distributing particular tokens, and establishing the basis for community-run governance.