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Here's How FLR Owners Will Participate in Flare Networks' Governance: Comprehensive Explanation

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Sun, 03/21/2021 - 14:27
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Vladislav Sopov
Flare, the much-anticipated EVM-compatible "XRPL utility fork," will allow its tokenholders to vote on crucial protocol updates: scheme revealed
Here's How FLR Owners Will Participate in Flare Networks' Governance: Comprehensive Explanation
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FTSO.UK, an oracle provider for Flare has shared infographics that cover the governance methods avaliable for FLR tokenholders.

On-chain democracy in Flare

According to the explaination by the FTSO.UK team, three grades of referendums will be envisaged by Flare's documents. Every community-driven proposal would be approved by either a simple majority, a super majority or a super super majority.

FTSO explains self-governance in Flare
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To be approved by a simple majority, the proposal should gain more than 50 percent of votes cast with 30 percent of Spark (FLR) tokens accumulated by its supporters. A "super majority" means 66 percent of votes cast and 50 percent of FLR tokens.

The most crucial proposals will be approved by 80 percent of tokenholders with at least 70 percent of FLR.

Depending on the potential impact this or that proposal may have on Flare processes, all governance decisions fall into one of three categories.

Flare's infrastructure takes shape

While a simple majority can approve transaction costs, parameter changes and oracle composition adjustment, a super majority can customize other oracle parameters, rewards policies and F-asset releases.

Changing the project's codebase, the additional distribution of Spark (FLR) tokens and oracle methodology adjustments will be approved by a super super majority only.

Related
XRPL-Fork-Based DeFi Flare Finance Launches Oracles, Announces Wallet Giveaway

As covered by U.Today previously, numerous oracle services have been launched among other infrastructure additions to Flare Networks' toolkit.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)