Twelve out of the top fifty cryptocurrencies ranked by market capitalization have implemented on-chain governance. They include DOT, ATOM, UNI, TON, ICP, LIDO, APT, ALGO, FTM, AAVE, and EOS. In a tweet, Justin Bons, founder and CIO of Cyber Capital, congratulated the networks praising them for such a significant achievement.
Credit where credit is due, out of the top fifty cryptocurrencies by market cap;
Twelve have implemented on-chain governance:#DOT, #ATOM, #UNI, #TON, #ICP, #LIDO, #APT, #ALGO, #FTM, #AAVE & #EOS
Congratulations, the future is now; adopt governance to support decentralization!
— Justin Bons (@Justin_Bons) May 15, 2023
On-chain governance is the basis for decentralization and requires encoding the rules for instituting changes into blockchain protocols. It empowers the community and uses smart contracts to organize the governance process of blockchain networks. Under such arrangements, developers propose changes during updates, and each node votes on whether to accept or reject the change.
In response to Bons’ tweet, Joel Valenzuela, a self-described crypto ambassador, acknowledged the implementation by the twelve cryptos as an essential first step. However, he noted that implementing on-chain governance is not enough. According to him, the implementation needs to be “good” governance, and the community must ensure it is actualized.
Valenzuela said, “That’s not even enough. It needs to be GOOD governance, and even then, the community has to ensure it is in practice. But it is an essential first step!”
Bons further explained that even good governance alone would not be enough to realize true decentralization. According to him, the implementation needs to scale sufficiently. Otherwise, it will be easy for the chains implementing on-chain governance to become corrupted.
Bons’ tweet captured only the cryptos among the top 50 by market capitalization. There may be other cryptocurrencies outside this bracket that have implemented on-chain governance. According to Valenzuela, DASH, which appears to be his favorite cryptocurrency, is one of such cryptos running on-chain governance despite falling out of the top 50 cryptos based on CoinmarketCap’s ranking.
With a market capitalization of $478.8 million, DASH ranked in the 86th position on CoinMarketCap as of the time of writing.