Top 20 market cap coin, Tezos, is making cryptographic history with its first round of on-chain upgrade proposals, named “Athens.” The two Athens proposals will see incremental changes introduced to the Tezos blockchain, without the need for a disruptive hard-fork.
It’s a little secret that Tezos has, in the past, received its fair share of governance issues, and these changes to Tezos on-chain governance have been long in the making.
Following one of the most successful ICO’s to date, where Tezos attracted US$232 million, a schism erupted within Tezos’ leadership structure, which saw co-founders Arthur and Kathleen Breitman enter into an open dispute with Tezos Foundation president Johann Gevers.
Gevers eventually stepped down, and now, the Tezos Foundation, developers, and the community have reached the final stages of the first amendment process of a blockchain – a historical achievement for on-chain governance.
Governance is an integral process for blockchains. As early Bitcoin pioneer Pierre Rochard states, “…governance is the process by which a set of transaction and block verification rules are decided upon, implemented, and enforced…” – a definition which could be applied to most protocols.
Here, Blokt examines what the Tezos Self-Amending Protocol is, how it’s used, how it compares to other blockchains governance models and its significance for blockchain protocols.
Tezos Bakers and the Amendment Process
To offer some context to the Tezos self-amending vote system and its advanced governance mechanism, we first need to understand what “bakers” are within the Tezos ecosystem, and how the amendment process works.
These “bakers” are baking blocks instead of bread. In Tezos, baking is a process where full nodes within the network create new blocks on the Tezos blockchain. Although it’s comparable to mining in that it’s essential for the creation of new blocks, it’s carried out via delegated proof of stake (PoS) rather…