According to VeChain official, this week VeBetterDAO unveiled its latest initiative to strengthen decentralized governance within the ecosystem. The newly introduced ‘endorsement’ mechanism is designed to empower the economy and X node holders by allowing them to play a more significant role in the platform’s governance decisions.
Why Warranties Matter
The assurance mechanism is a pivotal step toward decentralizing decision-making within the Better ecosystem, a long-term goal of putting governance power in the hands of the community. This initiative will allow community members to decide which applications can participate in the platform and earn governance rewards, a role previously held by the VeChain Foundation.
How Warranty Works
Through this mechanism, applications within the VeBetterDAO ecosystem must achieve 100 points earned through the economy and approval by X node holders to participate in the allocation round. Each node level contributes differently to the score, so higher level nodes have a greater impact. If your application falls below the required score, you will be given a two-week grace period to recover or risk being marked as inactive.
Node holders and application authors have the flexibility to manage guarantees to strategically align with their goals. This process promotes transparency and collaboration by allowing nodes to withdraw support and applications to seek endorsements from multiple sources.
New App: Entering the VeBetterDAO Ecosystem
New applications can join VeBetterDAO by submitting an application form and receiving NFTs from creators, which will help them easily participate in the approval process. These NFTs will allow creators to connect with node holders via a dedicated Discord channel to discuss potential endorsements.
Economy and the role of X node holders
Economy and X node holders are essential to the endorsement mechanism and provide the backbone for app endorsement. They can influence the quality and standards of the ecosystem by exploring applications and making endorsement decisions on the VeBetter platform. Node holders are encouraged to communicate with app creators via Discord, discuss endorsement possibilities and align on shared goals.
The endorsement mechanism creates a supportive and dynamic community environment by empowering both node holders and app creators to negotiate terms of collaboration, which can include rewards or shared stakes.
Introduction to VeChain
Founded in 2015, VeChain developed VeChainThor, a leading enterprise smart contract platform, and continues to drive blockchain adoption across a variety of industries. Developed in partnership with Boston Consulting Group, the ‘Better’ ecosystem focuses on sustainability and incentivization, rewarding sustainable behavior through tokenization.
Image source: Shutterstock