We are pleased to announce the decentralization and security-focused on-chain governance design of Taiko DAO. This milestone marks an important step forward in Taiko’s governance roadmap towards fully decentralized protocol governance.
TLDR:
- Optimistic governance model, where token holders have on-chain veto rights;
- Security Council that can efficiently and safely propose protocol updates;
- Multiple threshold protocol updates, with standard and emergency proposal routes;
- Encrypted emergency proposals;
- Token holders can delegate their veto power;
- Consolidated governance process in the Taiko Governance Hub.
taiko is an Ethereum-equivalent zkEVM-based rollup that is open, permissionless, and requires no additional trust assumptions as security is derived from Ethereum validators. Vitalik proposed the first block on Taiko Mainnet and endorsed it for its advancements in decentralization for L2.
Taiko is deeply committed to Ethereum’s core values ​​such as decentralization, permissionlessness, and trust minimization. This not only applies to the unique technical architecture of their rollup, but also to their commitment to granting the community on-chain rights in the protocol upgrade process.
Optimistic governance
Taiko is using optimistic governance that allows for a streamlined decision-making process that balances efficiency with community checks and balances. This design allows the Security Council to approve proposals, while giving token holders on-chain veto rights. This means that token holders can veto a malicious proposal and/or have the opportunity to exit. If a proposal does not accumulate enough votes at the end of the veto period, it is automatically executed after an additional 7-day time lock. Giving token holders on-chain veto rights and an opportunity to exit serves as checks and balances and an additional layer of security. It also combats voter fatigue, since voters only need to participate when a veto is needed.
Multi-signature multi-threshold
Additionally, Taiko is incorporating updates to the multithreshold protocol. polygon inspired. This gives the Security Council two avenues to implement protocol updates:
Standard proposal
The standard proposal flow is the typical path for most upgrades and ensures that the Taiko community can participate directly in the on-chain governance process. The process includes:
- An 8-member Security Council (to be announced) made up of internal and external members who create and approve proposals.
- 3 out of 8 Security Council approvals are required for a standard proposal to be approved.
- A community review period where token holders and delegates have the ability to veto proposals.
- Any proposal that does not reach the veto threshold at the end of the review period is automatically executed after a 7-day time lock, giving token holders the opportunity to exit if necessary.
Emergency supermajority with encrypted proposals
When a critical situation arises (for example, a major protocol vulnerability), the Security Council has an emergency process to expedite proposals to protect the Taiko protocol and the community. This is how it works:
- As in the standard proposal flow, any member of the Security Council can submit an emergency proposal.
- The content of an emergency proposal is encrypted to prevent exploitation before implementation.
- The approval threshold is higher for emergency proposals, and approval requires a qualified majority of 6 of the 8 members of the Council.
- There is no review or veto for token holders during the emergency proposal process, as proposals are encrypted for security reasons.
- Finally, the content of the proposal will be decrypted and made public to maintain accountability and transparency when executed.
Taiko Governance Center
The Taiko Security Council and the community can participate in the governance process in the Taiko Governance Center. For the Security Council, both standard and emergency proposals can be submitted through the Governance Hub. Token holders can also delegate their veto power or veto directly to the Hub. The Governance Hub is custom branded for the Taiko community and will evolve with Taiko governance.
Taiko DAO is active on the Hekla testnet for rigorous testing. With a truly binding on-chain governance system, voters will be able to directly influence the development of Taiko’s infrastructure. Feedback is appreciated prior to mainnet deployment. The best way to participate in the discussion is to join. Taiko Discord Server.
The Taiko DAO is designed to meet L2Beat Stage 1 Criteria when starting on the main network. Aragon’s governance solutions are ideal for L2s looking to become more decentralized, while balancing security considerations and complying with industry best practices.
Whatever solution your DAO requires, building with Aragon OSx means your governance systems can continue to evolve without compromising security or reliability. For more information on how we can help, reach.
