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Empowering the Future: Cere Network's Transition to OpenGov

Protocol
July 1, 2024

Cere Network is proud to announce it has transitioned from its current governance model, Gov1, to a more advanced system called OpenGov, in a shift representing a significant step forward in democratizing decision-making within the global network. OpenGov is a substantial improvement over the Gov1 approach, designed to empower a broader range of stakeholders, enhancing the adaptability, transparency, and overall governance of the network.

Hence, while useful for the short term, Gov1 is set to retire. It is relatively more limiting, more opaque, less flexible, not as on-chain, and too traditional in its approach to support innovation. With OpenGov, Cere Network can now meet a high standard of decentralization and benefit from a fairer and more efficient structure.

Why OpenGov Matters

OpenGov aims to involve a wider array of stakeholders in the governance process, ensuring a decentralized and fair decision-making environment. This broad participation helps prevent the concentration of power within a small group, which is a cornerstone idea of a fair and representative governance model. This also ensures that new ideas from smaller parties stand a chance at being heard and implemented, ultimately improving the network’s decision-making capabilities.

Furthermore, OpenGov is widely regarded as a best practice within Substrate-based blockchains which is why it’s applied by protocols such as Polkadot and Kusama. Adopting such a model not only aligns Cere Network with the industry’s highest standards but also enhances its credibility and trustworthiness. Doing so also better positions Cere to attract more principled and dedicated users who have a keen eye for governance-related matters.

Another one of the key advantages of OpenGov is its flexibility. The model allows for continuous evolution and adaptation, enabling the governance processes to respond to changing circumstances and stakeholder needs. This adaptability is crucial for maintaining the relevance and effectiveness of the network’s governance over time. 

Every action within the OpenGov framework is recorded on the blockchain, providing a transparent record of governance activities, as opposed to Gov1 where some off-chain instances can occur. It goes without saying that this level of transparency is the bare minimum to build proper trust within the community, as to allow stakeholders to verify and audit decisions.

OpenGov also supports flexible governance models tailored to specific needs and goals. This flexibility allows for experimentation with different governance approaches, promoting innovation and continuous improvement every so often. Such an environment is conducive to finding optimal solutions for various challenges and opportunities that the network may encounter.

An uncommon yet frequent enough scenario in governance is the dreaded hard forks, which can disrupt the network and create division within communities. To prevent such instances from occurring, OpenGov includes formal dispute resolution mechanisms that help prevent such splits by providing structured ways to address disagreements and conflicts. This ensures the integrity and unity of the network are maintained, and the community remains strong and sizeable through unity.

One issue that is common, however, is inactive community participation. Many networks and protocols suffer from dormant and disinterested users who for numerous reasons do not actively participate in the governance process of the protocols they’re involved with, leaving projects in the hands of the few. This can render a project far too centralized, compromise its integrity, and downgrade the decision-making capabilities of the project.

However, by improving upon all the aforementioned aspects of governance, OpenGov presents a far more enticing and trusted model for smaller users to actively partake in.

Key Considerations for OpenGov

Voter Turnout: High voter turnout is essential for the legitimacy and effectiveness of the governance process. Strategies such as vote delegation can help achieve broad participation by allowing stakeholders to delegate their voting power to trusted representatives. This ensures that decisions reflect the collective will of the community even when they’re not always directly involved.

Neutralizing Whale Voters: Large token holders can disproportionately influence voting outcomes, which can undermine the fairness of the governance process. OpenGov addresses this by emphasizing vote delegation and other mechanisms to promote equitable participation. This helps balance the influence of all stakeholders and ensures that governance decisions are more representative of the entire community rather than one party with a disproportionate allocation.

Monitoring System: A robust monitoring system is crucial to prevent malicious activities and ensure the integrity of the governance process. Cere Network has implemented alerts and configurations to monitor governance actions, to which anyone can subscribe through cere.polkassembly.io, providing an additional layer of security and oversight. These systems help detect and mitigate potential threats, ensuring that the governance process remains fair and transparent, and most importantly, safe.

Differences Between OpenGov and Gov1

Detailed Governance Tracks in OpenGov

OpenGov features multiple governance tracks, ultimately designed to ensure efficient and appropriate decision-making processes. In order to sort proposals and process them efficiently, the information has to be condensed into short and distinct forms to represent the numerous fundamental components of the governance models. With these governance tracks, Cere categorizes various different functions and areas in a manner that is easy to track, follow, and prioritize, not only improving efficiency but also enhancing transparency in the process.

These tracks include:

  • Root: Handles fundamental changes such as upgrades or governance structure alterations. This track requires the highest threshold of approval.
  • Whitelisted Caller: Used for delivering hotfixes and new features, requiring technical committee votes.
  • Staking Admin: Manages staking-related tasks like canceling deferred slashes or setting minimum commissions.
  • Treasurer: Oversees treasury-related functions, including approving and rejecting spending proposals.
  • General Admin: Covers general administrative tasks, such as managing the identity pallet.
  • Referendum Canceller: Cancels ongoing referenda without slashing deposits.
  • Referendum Killer: Cancels ongoing referenda and slashes both submission and decision deposits.
  • Small Tipper and Big Tipper: Handle small and large tip transactions, respectively.
  • Small Spender, Medium Spender, Big Spender: Manage spending proposals of varying sizes, from small to significant expenditures.

Each track has specific roles and requirements, ensuring that governance actions are handled appropriately based on their significance and impact. For example, the Root track has the highest threshold and longest decision period, reflecting the critical nature of the changes it handles.

The graph below illustrates the proposal approval process for the root track. In order for a proposal to be approved in the first 2 days, it needs a 90-100% approval rate and around 50% support (amounting to 5B CERE tokens). After 28 days, the support needed goes down to 20% of the network, and the approval rate changes to a simple majority of >50%.

Moving Forward

Transitioning to OpenGov brings numerous benefits to Cere Network, including enhanced democracy, transparency, and adaptability. This new governance model strengthens community engagement and participation, and by extension, network resilience. It is the framework needed to ensure the longevity and success of the network, where a unified and active community stands as one of the core pillars elevating the protocol to those heights.

OpenGov also positions Cere Network as a leader in blockchain governance within the broader Polkadot ecosystem. By adopting and refining OpenGov practices, Cere Network can contribute to the advancement of governance models across the blockchain space, benefiting the entire community.

The transition to OpenGov is a significant technical upgrade and a major shift towards a more inclusive and effective governance. It empowers and encourages stakeholders to take an active role in shaping the network’s future, ensuring that Cere Network continues to innovate and thrive as a collective effort.

Furthermore, OpenGov is a central cog in powering Cere’s data clusters. These clusters are decentralized and must be proposed through referenda where the token holders can vote on them. The cluster must satisfy the SLA levels it promised during its proposal to be rewarded, otherwise it will be slashed. With OpenGov, members can track the entire process with full transparency and participate in the voting process without any barriers. 

Read more here to understand why data cluster management is important for network efficiency.

Conclusion

The move to OpenGov represents a significant milestone for Cere Network. It brings a more democratic, transparent, and adaptable governance model that aligns with the principles of decentralization without compromising on practicality or efficiency. It engages the community and promotes broad participation, ensuring that Cere Network can respond to the needs and aspirations of its stakeholders.

This transition enhances the network’s resilience and innovation potential, positioning it to address future challenges and opportunities more effectively. To our readers, with OpenGov, you too can be an active member of Cere’s governance. If you want to make your voice heard, either by proposing or by voting, we are proud to complete the set of tools you now have at your disposal to become more than a member of the Cere community–you are now part of the network itself.

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