Today CoinFLEX is launching Governance Futures, which aim to represent the respective market prices of two divergent proposals to a cryptocurrency or blockchain project.
Bitcoin Cash is going through a scheduled upgrade on November 15th. Bitcoin ABC (one software implementation of BCH) team has proposed a change that could cause two incompatible versions of BCH running and two networks could potentially emerge. The change is the inclusion of an “Infrastructure Funding Plan” which diverts 8% of the newly mined BCH (block reward) to a hard-coded address owned by ABC, for the proposed purposes of funding development.
Right now there are 3 frequent outcomes in the governance of blockchains:
- Ossification: Developers of a coin debate implementations endlessly and the codebase stagnates, resulting in developers passionate about a coin seeking to instead create their own coin, where they have easier abilities to push changes.
- Single-person: One person can decide quickly but the disadvantage to centralisation is that anytime there is disagreement, there is no set process for resolving debates or including ideas the market may love but that decider may not.
- Social Media Debating: It is impossible to accurately gauge people’s views and this form usually results in fragmentation and siloing of views.
Voting with your Money. Cryptocurrencies are globally distributed, with communities in countries all over the world, speaking different languages and communicating in different forums. The universal language is money, that connects us all. Governance Futures allow people to vote with their money and even profit from the outcome they picked being the right one.
We are excited to be a part of this upcoming decision for Bitcoin Cash. Removing uncertainty is useful for both sides of a debate, and that is what CoinFLEX’s Governance Futures deliver. Governance Futures will play a role in Ethereum and other blockchains as well if governance matters can no longer be resolved by a small group of people without debate. These markets are important for cryptocurrencies to scale to being used by the whole world.
BCH ABC (Link)