A decade has passed since Nakamoto’s seminal paper introducing Bitcoin and its underlying technology, which is blockchain. Since then, blockchain has evolved as a general-purpose technology and has diversified to multiple areas of application. With this diversification comes more defined stakeholder structures for investor recourse. These structures result in governance systems that protect investor interests and prevent rogue individuals from running the organization contrary to the wants and needs of other stakeholders.
The AIWORK project provides an open network for artificial intelligence powered by blockchain technology. Since its underlying protocol facilitates a marketplace of crowdsourced AI human experts to help create, verify and validate AI data sets that make AI smarter, governance is needed to alleviate any investor and payment protection concerns.
What is Governance?
Blockchain’s decentralized nature calls for projects to distribute a greater amount of power and responsibility to their users. For that to function optimally, projects have to employ a method that guarantees only users who are seriously committed to the success of the project participate in it. Distributing control among stakeholders gives rise to ‘on-chain governance’ which involved issuing a type of utility token (or governance token) to users to represent their stake in the organization.
The governance token denotes powers unto users such as traditional management roles, the authority to change the project’s protocol, or voting rights in major decision-making processes. A user’s vote is weighted proportionally to the size of their holdings of the utility token.
Governance relates to the organization’s decision-making processes – answering the questions on who is responsible for what, how major decisions get implemented, whether authority is vested in a select few or distributed among all participants, and so on.
There is no one-size-fits-all when it comes to governance and all these questions have different implications on an organization depending on its operating system on both macro and micro levels. Take AIWORK for example, being in the video content industry means that they will open their blockchain platform and ecosystem for third parties to use such as content distributors, publishers, and advertisers. These individuals will help the project attain broad adoption and network effects benefiting all participants but the decentralized nature of blockchain tech calls for governance through participative democracy in this situation.
Governance on the AIWORK Protocol
AIWORK is currently in its inception phase which means that a central authority is responsible for steering the project forward in matters of decision making. However, the AIWORK team insists that after they are done stabilizing the project, the platform’s overall governance will get transferred to $AWO (the project’s utility token) holders.
With governance transferred to them, $AWO holders can then vote on the key issues within the platform, act as judges for fraudulent activities, and can make decisions on the protocol’s incentives and processes. The community will also decide on the direction of the AIWORK platform if significant changes in the business model are necessary for the future.
This is an incorporative governance model that involves multiple parties and it helps bring forth the qualities of transparency, integrity, effective performance, and collaboration in the AIWORK project. Governance is needed for the sustainability of the AIWORK project since through it, users can make decisions that promote the project’s evolution. Since the project is powered by blockchain technology, effective governance is essential for the successful implementation of blockchain protocols and for their ability to adapt, change, and interact with AIWORK’s AI node.
The Importance of a Well-laid-out Governance Model
In the context of blockchain, the debate on governance touches on two competing models: centralized vs. decentralized and on-chain vs. off-chain. We will not dive deep into these models since they cover a broad area; however, a good governance structure touches on matters such as reward systems, voting, decision making, network access, funding allocation, and block size.
AIWORK has a well-laid-out governance model that helps it manage and coordinate its video content community toward the same goal. We are in the age of information and personal empowerment, and AIWORK is leveraging the potential of blockchain’s decentralized nature to act as a driver toward a future designed to vest authority in the hands of the people.
With a properly engineered governance model, AIWORK can bring a digital extension of representative democracy after the project stabilization phase.
Follow AIWORK’s socials for more in-depth project insights:
Website | Telegram | Twitter | Medium
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