Optimism, the Ethereum layer-2 scaling solution, is gearing up for its second governance system update this year, aiming towards a more decentralized model. The Optimism team announced on Friday that changes would be implemented from Aug. 1 as part of their ‘Season 8’ revamp. This will incorporate stakeholder voting, a publically accessible definition of citizenship, and an auto-pass procedure for proposals.
“We have always desired to construct a governance model suited for the new era of the internet. We now recognize that this requires reducing platform risk by creating accountability in areas where traditional corporate governance models have fallen short,” the team expressed.
The earlier season, spanning from Jan. 16 to June 11, was centered on interoperability. Optimism’s governance is geared towards minimizing platform risk.
The Optimism team has established four stakeholder groups: tokenholders, end-users, apps, and chains, to ensure inclusive voting on governance proposals. “Season 8 aims to make governance accountable to all major stakeholders of the Collective, not just the financial ones, a significant flaw in both traditional corporate and crypto governance models,” the team emphasized.
Optimism is governed by two houses: the Token House and the Citizens’ House. The Citizens House, introduced in April 2022, empowers every citizen with one vote. The Token House is responsible for voting on matters such as protocol upgrades, sequencer selection, and governance fund allocation through token-weighted votes. Tokenholders will persist as a crucial stakeholder group represented via a token-weighted voting model in the Token House.
Optimism has introduced a publicly verifiable definition of citizenship onchain and segmented it into three categories: end-users, apps, and chains. Nevertheless, the team also mentioned that citizenship at present is an ‘experiment’, and current citizenship does not guarantee it in future updates.
Starting August, a new approval process will be implemented, where most will follow an ‘optimistic approval process’, allowing it to auto-pass unless a stakeholder vetoes. The aim is to ensure that busy contributors can still control the system without spending their entire time on politics, according to the Optimism team.
“Participation in governance should not necessitate spending hours reading forum posts and navigating intricate bureaucracy. Being a governance participant should not be a full or part-time job,” they added. Resource budgets will be proposed by the budget board and passed unless vetoed. Protocol upgrades will be voted on by an independent developer advisory board, representing both the Token House and the Citizens’ House.
