Decentralized delta-one asset protocol Linear Finance has been putting finishing touches on its governance model over the last couple of weeks.
Linear Finance ($LINA) released a detailed overview of the structure amongst other modalities of its governance model.
Source: Linear Finance
According to an official Linear Finance blog post, the delta-one asset protocol is focused on achieving three main goals. These goals will:
- Empower community members to propose or facilitate strategic changes to the protocol.
- Allow community members to also be able to shape or exert a huge influence on the future of the asset protocol
- Preserving long-term growth and the healthiness of the protocol via the governance model.
More on the Governance Model
The new governance model will have three (3) major participants namely; Community participants, Linear Council, and Linear Protocol DAO (pDAO)
1. Community Participants
These are users who own $LINA tokens whether available, staked, or locked. Basically, Community participants are any member of the Linear Finance ecosystem. By owning $LINA tokens, they can submit:
- Linear Improvement Propositions (ℓIP) and
- Linear Listing Propositions (ℓLP) as suggestions to the protocol.
Submitted proposals have to pass both the Linear Preliminary Improvement Proposition (ℓPIP) and the Linear Improvement Proposition Phase to become a new policy.
2. Linear Council (LC)
The Linear Council members are determined by an electoral process. They also make up the main governing council and consist of seven (7) community members. It’s their job to vet propositions and weed out propositions that may have negative effects on the Linear protocol. Linear Council members will also receive a stipend for their services by the Protocol DAO (pDAO). The nominations are going on now.
We are pleased to share the latest update on the Linear DAO.
This week we are excited to announce that the Linear DAO Forum & Linear Council Nominations are now live!
— Linear Finance (@LinearFinance) October 13, 2021
Council members remain in position for 3 months. They are also expected to vote on at least 90% of all ℓIPs/ℓLPs approved by the community.
3. Linear Protocol DAO (pDAO)
The pDAO is in charge of the flow of funds on Linear Finance. The protocol also ensures that the community continues to receive incentives. This encourages the community to grow and develop Linear Finance ($LINA).
Major members, key contributors to Linear Finance, and other top Participants in the DeFi space will make up the Linear Protocol DAO (pDAO).
For the Linear Preliminary Improvement Proposition (ℓPIP)
These propositions originate from forum discussions. Linear community members assess the purpose and viability of the proposition.
What’s the best way to take part? Users need to have held more than 1,000 $LINA tokens for at least 4 weeks before voting.
Also, a successful proposition is one that attains the minimum voting quorum. The quorum equals 5% of the total amount staked in the Linear ecosystem. The proposition must also get the majority of votes which is over 50.1% of all votes.
The Team Behind Linear Finance
The company’s LinkedIn profile shows 10 employees, most of which are based in Hong Kong. Kevin Tai and Drey Ng are the company co-founders and users can check out their white paper to see what the company’s long-term vision is. Our Project Spotlight has more information on the company’s founding and its goals for bringing financial derivatives to Ethereum and across different blockchains.
Linear is very serious about their DAO. They just joined the OpenDAO network as you can see by this tweet below.
Thank you for the welcome, we are pleased to bring more value via @opendaoprotocol to our users.
— Linear Finance (@LinearFinance) October 14, 2021
The launch of the Linear Finance governance model is a step in the right direction for the protocol to become truly decentralized.
At the time of writing, $LINA was trading at $0.052536 with a market cap of $155,448,806 and a 24-hour trading volume of $40,025,231. The token price is also up by 5.6% in the last 24 hours.
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