DeFi. EYWA’s path to decentralization
In a previous article, we talked about why we consider decentralization one of our top priorities. In this article we'll tell you what we've already done to make it happen!
First, which we've always talked about, is that we're still decentralizing our investors! EYWA does not have an "anchor" investor who owns a large share of tokens, and we will continue to control this process going forward.
Second, we are preparing the project to go "free-floating" and put it entirely in the hands of the community. They will be able to determine the incentives, set the development trajectory, make important decisions, and decide key issues on their own. It's a long road we've been on consistently since the founding of the project!
How exactly are we going about making EYWA the most decentralized project possible?
From a technical point of view, we divide the road to decentralization into 3 stages.
The first stage. The team manages everything at the point of early development and implementation of key technological solutions. It also interacts with audit companies and quickly fixes major bugs in the code. At this point, the team itself manages the validators and smart contracts. Now that the project has just been launched into technical mainnet, we are presently at this exact stage.
Stage 2. The team is gradually moving away from management, the decentralization of validator management starts to occur - a separate group of people from our investors, editors and partners is being formed. This process is called Proof-of-authority.
As far as smart contracts are concerned - they are managed through MultiSig, which has other people, such as investors, advisors and partners, in addition to team members. They can externally evaluate decisions and block the ones they don't make. This stage is expected when EYWA enters commercial operation.
Stage 3. This is the transition to full decentralization where the biggest DeFi projects like Curve and Maker, the protocols that hold billions of dollars and have trust from the market, are currently at. The third stage is about moving from Proof-of-authority to a mode where anyone who owns enough tokens can participate in the system. Owners of a small token amount can contribute to the decision making process, anyone with a minimum stake of 100,000 EYWA tokens can run a node and participate in validation, and even someone with a small stake of a few hundred tokens can delegate their tokens to the validator, thereby also participating in this ecosystem. This is the first security loop.
A DAO is created to manage the smart contracts, which is then managed by those who have tokens locked in the stake. The longer the term for which the tokens are locked, the more votes a person gets. It is the members of the DAO who determine the key protocol settings. Such a system stands closest to the democratic model.
However this system may have its flaws as well. For example, those who have more money may have more votes. But at the same time, each participant of the system will have free will, and with a large number of participants the opinion of those who have few votes will also be taken into account.
At this stage, the team is barely involved in decision-making: it has only 17% of the tokens left. This amount will be decent enough for a while at the start, but about a year after the token launch, the system will be almost entirely community-driven.
We are creating a community-driven project, and at the moment we believe this approach to project management is the safest and most successful, as we focus on the positive experience of the most successful DeFi projects.
Thank you,
EYWA team
