The development of many cryptocurrencies now relies heavily on sponsorship, organisational donations and funds, such as bitcoin. A major drawback of this economic model is that it does not guarantee sustainable funding of the blockchain system. The lack of stable funding is a huge hidden danger that hinders the sustainable development of blockchain projects.
To address the sustainability of long-term cryptocurrency development and maintenance, a research team led by Dr. Bingsheng Zhang of IOHK has developed a Treasury System that provides long-term sustainability of funding for Cardano.
A fair collaboration mechanism is an essential guarantee for a treasury system to be smoothly implemented on a decentralised blockchain. Designing fair voting systems has been a challenging issue that many decentralised blockchain projects struggle to resolve. The Treasury System solves this governance problem by developing a “community-inclusive” distributed collective decision-making mechanism, providing a better collaborative model as a provably secure system that supports liquid democracy/delegated voting. It allows voters to vote directly or delegate votes to experts.
For more details on Treasury System, please watch the interview with Dr. Bingsheng Zhang.
