Hosting a decentralised application (dApp) on a blockchain is popular due to its fundamental merits for the users. It is a software program designed to exist in a way that no single entity can control it. However, it must be pointed out that in terms of usability a dApp can only succeed throughthe development of a viable model for decentralised governance. PRIMARY will offer its members a decentralised model of governance which will enable the exchange to operate under the conditions of a free market.
Chosen methods for PRIMARY’s governance application
Contradictory incentives that individual platform members are exposed to might hurt the network in the long run. However, a viable middle ground can be found by implementing fruitful governance methods. Individual incentives are aligned to arrive at a stable conclusion. Consequently, blockchain governance will increase the adaptability of the platform and foster innovative decisions.
Generally changes to the configuration of the blockchain protocol and the resulting marketplace’s incentive structure can be divided into two categories:
- on-chain governance
- off-chain governance
In the case of the former, changes are immediately made following a vote in the community. On the contrary off chain governance prevents changes being automatically implemented to the protocol as it is a governance method that requires individual users. PRIMARY’s off chain governance mechanism will technically mirror the principle of majority consensus in decision-making processes enabling sustainable votings.
Smart contracts and Artificial Intelligence
The platform’s governance mechanism will be supported by a dedicated smart contract system in order to optimise certain blockchain parameters by voting. The one powering the PRIMARY member score system will enable a form of governance which prevents individual actors from working towards the destabilisation of the network. In fact, voting can be conducted by differentiating between users and developers. Additionally, an in house developed artificial intelligence (AI) algorithm will ensure that all decisions made by the PRIMARY community are implemented in an impartial manner.
Leveraging the community to decentralise governance
As standardised governance models for blockchain systems have still not been perfected, the PRIMARY team will keep developing the platform’s governance model until an optimal mechanism has been implemented. One of the most important aspects of decentralised governance is the engagement of the community without any centralised authority. For this reason the PRIMARY team has decided to take feedback from the initial users when framing how consensus will be reached within the marketplace.
Tokens used as governance incentives
In addition to facilitating financial transactions, PRIMARY (PRY) tokens are necessary for developing governance incentives on the platform. PRY is an ERC20 token which has been designed through the use of a smart contract to be mintable. This will ensure that the platform’s incentive structure remains stable regardless of any oscillation in the price of PRY tokens.
PRY tokens are instrumental in the voting process as staking them gives users ENERGY – which can be used for voting purposes. Of course, it would not be fair to allow anyone to simply purchase a greater amount of voting power. For this reason a user’s voting power decreases each time they vote on an issue, thus disincentivizing rogue elements from spamming the system.
Stay in touch with PRIMARY
The private pre-sale of the PRY token started on the 1st of August, 2018. For further information regarding token distribution and the team behind the project visit PRIMARY. Or get the latest announcements by joining our email list.
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