Governance on the Fantom (FTM) Network

Fantom (FTM) is a decentralized blockchain platform known for its high throughput and scalability. An integral part of the Fantom ecosystem's decentralization is its governance model, which enables community members to participate in the decision-making processes. Governance within the Fantom network is facilitated through a decentralized autonomous organization (DAO), which empowers stakeholders by giving them a voice in project developments and protocol changes.

The governance on the Fantom network operates through a voting mechanism, wherein FTM holders can propose changes or vote on proposals made by others. This system relies on FTM, the native token of Fantom, which is utilized in governance to determine the weight of each participant's vote. Specifically, the more FTM a holder stakes, the greater their voting power.

Proposal Submission

Any user with staked FTM can submit a proposal to the network, aiming for improvements or adjustments to the protocol. Common proposal topics include updates to fee structures, network optimizations, or changes in staking rewards. Once submitted, the proposal goes through a period of review, during which the community can discuss and evaluate the merit of the suggested changes.

For a proposal to proceed to a vote, the proposal submitter must also include a technical implementation plan in many cases. Proposals lacking sufficient community support or failing to meet technical feasibility requirements are often rejected early in the process. This stage allows the community to scrutinize whether proposals are in line with the general consensus and the best interests of the network.

Voting Process

After initial discussions, proposals are eligible for voting. All stakers of FTM can participate, with their voting power directly tied to the amount of FTM they have staked. A spectrum of voting outcomes is possible, including full rejection or full approval. There is also an element of flexibility within certain proposals where optional outcomes or scaled changes can be reviewed.

For a proposal to pass, it is generally required to meet a specified quorum, ensuring that a sufficient portion of the community has been involved in the decision-making. Furthermore, the governance system is built on-chain, which enhances transparency and reduces the possibility of any off-chain manipulation or central authority tampering with the results.

Incentives for Participation

To foster engagement in governance, Fantom provides direct incentives to those actively participating in decision-making. Participants may earn rewards in the form of FTM tokens, and some proposals can include adjustments to incentive systems themselves. This ensures that governance participation not only serves the ecosystem but also has tangible benefits for community members. Strong governance participation is considered key to long-term network health and decentralization.