The TON Foundation has announced Society DAO, a new governance model to increase decentralization in TON-related decision-making.
Telegram-developed, decentralized blockchain The Open Network (TON) will witness a new governance model with the introduction of Society DAO. A DAO (decentralized autonomous organization) comprises community members who vote for all major project-related decision-making.
The TON Foundation, which led the development of the blockchain via decentralized means, announced the switch to Society DAO on November 1. This announcement, which came as a blog post, highlighted the centralization risks associated with the Foundation model, which resembles a corporate structure.
“Over the past year, many founders have relied heavily on the Foundation for success, as it often serves as a central hub for capital,” it read. “However, the Foundation sees this as a centralization risk—one that could lead to a single point of failure.”
Society DAO Aims to Replace the Pitfalls of a Foundation
Essentially, the foundation overseeing the activities of a network can become a massive risk for projects wanting to launch on said network. Since capital revolves around the foundation, projects become tied to it for success.
So, the Society DAO is the TON Foundation’s answer to decentralized management, with projects receiving funds based on the DAO’s votes. That, of course, will occur when projects achieve certain key performance indicators (KPIs). Society DAO will be governed by four founding members—or teams integral to TON’s development—TON Core, TON Studio, TON Society, and Wallet in Telegram. The foundation calls this the “Community Model.”
Regarding its own role, the foundation will “support this DAO by reporting on its goals, KPIs, and strategies, ensuring compliance, and providing grants and other resources.” The blog further said, “Society DAO will grow to include proven and reputable community teams that can propose and execute a plan that supports the ecosystem’s objectives.”
Society DAO will work to advance a set of initial goals, including making TON the hub for crypto use cases, the most stable and scalable network, and growing user and developer counts associated with its Super Apps. The blog also mentioned how the DAO could achieve these goals, “With a public view over Society DAO’s objectives, the community can contribute their opinions and help guide the DAO on how best to achieve the Ecosystem goals.” Eventually, the DAO will accept teams that recommend successful proposals into its core committee, allowing more committed members to increase the level of decentralization.
