PIVX – Private Instant Verified Transaction, has successfully kickstarted the process for a true decentralized system as Masternode owners (MNOs) have voted massively for the Community Designed Governance proposal which distributes voting power among all owners of the cryptocurrency.
Governance models in the cryptocurrency world have stalled development in various areas. The perfect blockchain governance includes full participation whereby every individual is represented. This simply means that consensus on issues concerning the currency will have to be reached by a majority of the community.
This is observed in the ownership of huge mining farms in the Proof of Work (PoW) system of Bitcoin. These huge mining farm owners make it almost impossible for individuals who attempt to mine independently on their CPUs to compete, therefore the system is seen to move gradually into a partially centralized system of governance.
Other systems of decision making, such as Dash’s Proof of Service (PoS) have also been noted to have their own limitations at enabling true decentralization. In such cases, it is the Masternode owners (MNOs) that represent the governing council of such systems. They retain the exclusive voting right within the community.
In order to distribute voting power and extended participation in the decision making process of Private Instant Verified Transaction (PIVX) a Community Designed Governance proposal was submitted to Masternode owners (MNOs) to give up their exclusive voting rights, extending it to all PIVX owners which included simple agreement:
“PIVX will work towards a ‘Community Designed Governance’ system that changes the distribution of votes, to include the entire PIVX community.” expected to be added to the governance page of the digital currency.
This proposal has received approval from Masternode owners, passing with an unprecedented 1288/0 in a “Yes/No” vote which represents 62% of Masternode Owners. After this massive approval more proposals will have to be submitted detailing every feature and specification of the Community Designed Governance model.
The passing of this proposal is accompanied by the final reduction of block rewards in the Proof of Stake (POS) phase of PIVX. Block rewards will move from 10 PIV to 5 PIV still providing incentives to staking wallets and Masternode owners, maintaining the up to 10% allocation of block rewards for the blockchain based budget system.
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