In today’s modern world more push has been made to implement decentralized concepts. More specifically in the financial sector, Bitcoin revolutionized our ability to validate a transaction (within minutes) in a trustless environment, logging transactions in a distributed ledger, between peer-to-peer with no need of intermediary support (e.g. banks) using its blockchain technology. Bitcoin laid down the fundamentals that soon other programmers and developers would attribute to their versions of the blockchain. Vitalik Buterin, a programmer, stepped in to implement tokenization of assets and smart-contract functionalities embedded in the blockchain Ethereum, thus offering endless possibilities of creating crypto-assets (e.g. tokens) and automated processes (e.g. decentralized applications). Almost immediately, many blockchain projects ensued to further exploit the Ethereum blockchain capabilities. However, just like blockchain scalability issues (e.g. high transaction costs and network latencies) and network attacks on the blockchain manifested, so did smart-contract vulnerabilities. The traditional solution was to either update the blockchain or create an entirely new one, a method called soft forking or hard forking respectively. We would like to introduce our decentralized governance protocol (DGP) as an effective resolution to address blockchain issues: scalability, network attacks and smart-contract errors. Metrix Coin’s DGP with our network of Governors provide the forward-moving initiative that addresses these blockchain concerns. Our vision of a community-driven project aligns with our DGP development efforts to ensure our blockchain operability offers a reliable system to our community. Here are the top 16 questions answered to introduce you to our Metrix Coin DGP.
Disclaimer: Metrix Coin blockchain is a hard-fork from Quantum blockchain with majority code enhancements pertaining to Metrix Coin.
What is a Decentralized Governance Protocol (DGP)?
Decentralized Governance Protocol, or DGP, is a public and transparent mechanism through smart-contracts that permits blockchain network changes addressing scalability and chain network issues without the need of soft and hard forking.
What is decentralization in its simple explanation?
Decentralization is to take an entity’s faculty and break away from a central point of oversight. In other words, redefining distribution of power from one entity to a network of participants.
What is governance?
Governance as the name implies is to instill a managerial system of guidance over a network or community.
What is decentralized governance?
Combining questions 2 and 3, decentralized governance is a system of reform from one central point to a community of partakers.
Why have Decentralized Governance Protocol (DGP) in the Metrix Coin blockchain?
Metrix Coin blockchain is optimized with a decentralized governance protocol embedded in the chain to ensure the ability to upgrade and administer certain network changes without the need of soft and hard forking. In the recent years, bitcoin and ethereum blockchain have faced many concerns involving scalability (e.g. increased network fees and latencies), and network attacks via exploitation of smart-contract by hackers. The Governors within the ecosystem will all participate in the governance of the chain adding security. Thus, Metrix Coin with DGP promotes healthy growth of the chain, addressing scalability, and network issues.
What is a Governor node, or Governor, and how is that different from a stake node?
A Governor node, or Governor, may participate in voting on blockchain or budget proposals. The holder must have 7.5M MRX as collateral in their Altitude wallet to activate a Governor. One responsibility of a Governor is to ping the network or participate in a vote at least once a month. These actions ensure that the Governor is an active entity, and keeping up with the current chain proposals and budget allocations.
Metrix Coin is a proof-of-stake blockchain that holds many stake nodes. A stake node participates in the overall network security by holding any amount of Metrix Coin as collateral to actively validate block transactions (e.g. block creation), and receives a stake reward for creating blocks. This process of transaction validation within the blockchain is called staking.
What is a development budget fund, what is the cost for new development budget proposals, and how do they work?
The development budget fund is to fund for developers to build on top of the chain. The developer must offer a clear detailed proposal along with a non-refundable application fee of 600K MRX for Governors to review and vote. For example, a developer would like to receive 2.5M MRX in funding every month for services rendered. The developer would submit a budget proposal that details the task along with 600K MRX for Governors to review and vote. There may be a preliminary community-driven vote to assess community sentiment prior to engaging the Governors for an official vote. Once Governors are ready to vote, they will send ~15 MRX for either a yes or no vote. If a majority of 10% of Governors vote yes, then the budget proposal passes. If a majority of 10% of Governors vote no, then the budget proposal fails. As a reminder, there is a non-refundable 600K MRX that will get burned. The 600K MRX fee is to deter proposal spamming, and to ensure that proposers take the time ro properly produce their proposal for funding.
What is the minimum and maximum number of Governors for the Metrix Coin blockchain?
The minimum number of active Governors in the network to vote for budget and blockchain proposals is 100. The maximum number of Governors in the network is capped at 1,920. This is in line with approximately 1 Governor per block reward every 48 hours. If there is no Governor to receive the reward (e.g. The Governor already received a reward within the last 48 hours.), then it goes to the development budget fund.
How long must a Governor node be active before participating in a vote?
Governors must be active for at least 28 days before participating in a vote.
What are the voting mechanics for budget and blockchain proposals in the Metrix Coin blockchain?
Budget proposals need 10% yes votes to pass. For example, if there are 767 active Governors, then 77 Governors will need to vote yes for the budget proposal to pass.
Blockchain proposals need 51% yes votes to pass. For example, if there are 767 active Governors, then at least 392 Governors will need to vote yes for the blockchain proposal to pass. Notice, Metrix Coin blockchain needs a minimum of 100 Governors in order for votes to register.
How frequent can votes occur?
Governors may vote on budget and blockchain proposals at any time.
Are there any transaction fees?
Governors run in smart-contracts so any interaction (e.g. enroll, unenroll, vote and ping) will require a transaction fee to be paid. The transaction fee is ~15 MRX.
How many confirmations are needed to unenroll?
A Governor needs to wait for 15 confirmations before unenrolling.
Does the development budget fund receive any percentage from the Governor and stake rewards?
Yes, the development budget fund receives 10% of the Governor and stake rewards.
What is the annual percentage yield (APY) for Governor rewards?
Governors should expect the same APY as stakers. Governors receive in consecutive order 10% annually for 2 years (December 2020 to December 2022), 5% annually for 4 years (December 2022 to December 2026), 2% annually for 6 years (December 2026 to December 2032), and 1% annually until max supply has been reached (December 2032 and thereafter).
Governors are rewarded every 48 hours, and are not required to be online. In contrast, stake nodes are required to be online. Stake nodes are rewarded for validating transactions, and the amount of collateral is weighed against the network weight. If the more amount of Metrix Coin is staking, then the higher the chances of creating/validating a block and receiving a stake reward.
What are the steps to running a Governor node on the Metrix Coin blockchain?
The steps to setting up a Governor are simple. You must download and install Altitude wallet in your operating system, and deposit 7,500,000 MRX plus 20 MRX (to cover the transaction fee). Click enroll, confirm the enrollment, wait for confirmation to begin, and once confirmation begins you may receive a gas fee refund. Congratulations you are now running a Governor node.
Do not hesitate to ask if you have any questions or concerns. You may visit us at our Discord https://discord.gg/X5K5mg3. We will be glad to help.
Please join our socials to keep updated on this amazing project so that you don’t get left behind.
https://twitter.com/MetrixCoin/ – Metrix Twitter
https://discord.gg/DY4d7AV – Metrix Discord
https://t.me/officialmetrixcoin – Official Metrixcoin Telegram