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Exploring DeFi Governance Models

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Dubai, UAE, 21st April 2024, A revolutionary force behind many recent crypto innovations, DeFi, is challenging the financial sector, questioning traditional governance and decision-making models. DeFi’s core lies in the power of crypto holders and users who work together to improve access to financial opportunities for all. Although DAOs appear to be the most common and talked-about governing model in blockchain, the truth is that the situation is far more intricate and varied.

DeFi Governance 

DeFi governance pertains to different methods found within the DeFi landscape. It usually pertains to the cooperative and decentralized decision-making procedures that enable stakeholders (e.g., users and developers) to govern decentralized applications, platforms, protocols, etc. Typically, DeFi governance is based on a community-driven approach, which implies stakeholders coming together to make decisions on various aspects of the projects they manage, such as upgrades, ambassador campaigns, or additional token issuance. 

Decentralization-focused approaches ensure no one has excessive influence over a particular project, minimizing the risks connected with centralization. However, it is crucial to note that certain projects choose to maintain a centralized governance approach, at least while their company is growing.

Lastly, DeFi governance is often focused on guaranteeing transparency, which contributes to building trusting relationships with the community supporting the project. Consequently, the project can ensure justness and accountability, motivating stakeholders to invest their time and passion in governance.

Typical Governance Models

One of the most favored governance models is DAO (Decentralized Autonomous Organization). This innovative governance model leverages the power of smart contracts to ensure proposing, voting, and executing proposals without intermediaries. This way, they provide a high level of decentralization and transparency, promoting a culture of openness and inclusivity. DAOs usually rely on governance tokens to distribute voting rights and decision-making power to users. Furthermore, projects may adopt various approaches to distributing these tokens, including liquidity mining, staking, or even ICOs. Governance tokens are unique in their ability to develop over time. As projects progress and adapt to changing market conditions or community needs, governance mechanisms can be altered, too. This adaptability guarantees that decentralized platforms remain responsive to the requirements of their user base while ensuring decentralization and security.

The second governance model is liquid democracy. This model was first discussed in the context of traditional politics but gradually shifted into the blockchain space. Such a form of democracy seeks to merge direct and representative democracy. With this approach, token holders can either vote directly on proposals or delegate their voting power to representatives they respect and trust. As a result, voting members can ensure that decisions genuinely represent the community’s wishes. Projects, in turn, can benefit from more flexibility and scalability in such a governance structure.

The third approach worth mentioning is futarchy. It relies on prediction markets to evaluate proposals regarding their benefit to the project or ecosystem. Although governance mechanisms inspired by futarchy are rare, they have the potential to increase participation among members by enabling them to bet on policies they believe are the most advantageous.

Distribution of Influence

Another method to differentiate governance models is to consider the influence distribution within the project. There are three primary approaches: founder-based, council-based, and community-based. In the founder-based governance model, a single individual, typically the project’s creator, has the final say. 

The council-based model is more representative and decentralized, but it may not be ideal for upholding DeFi’s fundamental principles, such as accessibility and equality. The council generally comprises a small group of founders, early adopters, and other significant supporters who are accountable for making important decisions regarding the project. They may consider the community’s views while discussing the project’s development and associated changes, but they are not obliged to agree. 

Lastly, the community-based model is a type of governance in which a significantly larger number of individuals make decisions that affect the project’s development. Most DeFi projects pick governance models that imply the community’s deep involvement, which is evident from the abovementioned governance models.  

Conclusion

The governance models of DeFi signify a significant change in how systems can be governed, even beyond DeFi. They enable users to participate in establishing and expanding decentralized projects, thereby contributing to shaping the entire DeFi industry. Furthermore, such approaches to governance stimulate creativity, grit, and responsibility within the blockchain ecosystem, which significantly assists in its growth. Kinetex supports the notion of empowering the community and welcomes users to become members of Kinetex DAO. 

Kinetex Network: Website | Kinetex dApp | Blog

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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.

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Match System’s CEO Andrei Kutin Announces Full Recovery of $68 mln Stolen Crypto Assets

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Summary:  $68 million from the incident occurred on May 3, 2024 related to the “dust” attack were fully returned to the victim today with the participation of the cybersecurity agency Match Systems and the Cryptex cryptocurrency exchange. At the moment, the victim has no complaints against the attacker.

On May 3, 2024, one of the crypto whales became a victim of a classic dust attack (or “dandruff attack”) resulting in the theft of 1,155.28 WBTC, worth over $68 million.

The stolen tokens were received by an unknown scammer to the address 0xd9A1C3788D81257612E2581A6ea0aDa244853a91, from which the funds were moved to the address 0xfB5bcA56A3824E58A2c77217fb667AE67000b7A6. After which the stolen funds began to be distributed in parts to several scammer’s addresses. 

The victim immediately sought assistance from Match Systems. As a result of promptly conducted work, the assets were found and returned to the crypto whale in full in just a week. 

This incident perfectly demonstrates that promptly contacting specialists in case of theft of crypto assets significantly increases the chances of the crypto fraud victim to get them back. Moreover, the earlier the victim seeks help, the higher the probability of getting the stolen funds back in full.

More detailed information about this type of theft is contained in the article:

https://journals.nauss.edu.sa/index.php/JISCR/article/view/2237/1275

About Match Systems:

Match Systems, is a leading company specializing in AML services, blockchain investigations, and implementation of compliance procedures for cryptocurrency projects around the world. By leveraging advanced technology and expertise in financial crime detection, the company is poised to help organizations to navigate the complex regulatory landscape as well as minimize the risks associated with digital currencies.

Media contacts:

Name: Joseph Anderson

Website:  https://matchsystems.com/    

Email: [email protected]

Address: Dubai, UAE

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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.

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Arch Town Labs Announces Focus on Investing in and Supporting Non-profit Organizations and Social Impact Initiatives

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In the realm of non-profit organizations and social enterprises, funding is a critical factor that often determines the success or failure of the mission. One increasingly popular source of capital is Venture Philanthropy, a practice of making investments in non-profit or social enterprises that aim to generate both a social return and a financial return. In this article, we will explore three prominent venture philanthropy firms that non-profits and social entrepreneurs should be aware of.

Arch Town Labs

Arch Town Labs is a prominent venture philanthropy firm founded by Artem Vershinsky and Pavel Ryzhykh in 2023. It focuses on investing in and supporting non-profit organizations and social enterprises that are dedicated to creating positive social change. This organization believes in the power of social entrepreneurship and uses its resources to help these organizations scale and maximize their impact.

New Profit

New Profit is a venture philanthropy organization that aims to break down the barriers standing between people and opportunity in the United States. It seeks to transform the way America educates its children, propels people towards social mobility, and re-engineers our workforce for the future. The organization provides funding and strategic support to a portfolio of social enterprises to accelerate their impact.

The Edna McConnell Clark Foundation

The Edna McConnell Clark Foundation has been a pioneer in the world of venture philanthropy. The foundation is committed to helping financially disadvantaged youth in the United States. It achieves this by making large, long-term grants to non-profits that have demonstrated the potential to significantly improve the lives of these children.

The Skoll Foundation

The Skoll Foundation is another key player in the field of venture philanthropy. It was established by Jeff Skoll, the first employee and first president of eBay. The foundation invests in, connects, and celebrates social entrepreneurs and innovators who are committed to solving the world’s most pressing problems.

The Omidyar Network

The Omidyar Network is a philanthropic investment firm. It was established by eBay founder Pierre Omidyar and his wife Pam. The network supports innovative start-ups and non-profits in areas ranging from education and financial inclusion to property rights and government transparency.

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Media Details:

Website URL: https://archtown.org/labs

Company Name: Arch Town Labs

Contact Person: Artem Avershinsky

Email: [email protected]

Company Address: London, United Kingdom

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Embracing a World of Mutual Understanding among People through Mountain Tourism – “International Mountain Tourism Day 2024” Theme Events Will Kick Off

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China, 19th May 2024 – The “International Mountain Tourism Day 2024” Theme Events will be held in Nice, Alpes-Maritimes, France on May 29. The Events is hosted by the International Mountain Tourism Alliance (IMTA), a non-profit international organization initiated and established by China. A series of activities will be held around the events theme “Mutual Understanding among People through Mountain Tourism” and the forum theme “Mountain Tourism Destinations Responding to Climate Change“, including a launching ceremony, theme forum, promotion conference, negotiation meeting, exhibition, etc. 

Scenery of the Nice Côte d’Azur. Image source: Nice Côte d’Azur Tourism Board 

@Ville de Nice.

The year 2024 marks the 60th anniversary of diplomatic ties between China and France, and is also the “China-France Culture and Tourism Year”. France is a cultural and artistic center of Europe and one of the earliest countries to develop mountain tourism, the Theme Events held here will be meaningful. Through multi-perspective, multi-field, and multi-topic discussions and interactions, it will bring in-depth thinking and experience to the attendees. Through various exchange activities, it will showcase and disseminate the development concept of mutual understanding among people, and promote the innovation of the “Mountain Tourism Plus” model.

At the opening ceremony on the morning of May 29, leaders and representatives from IMTA, relevant institutions in Nice, France, relevant Chinese institutions in France, and international organizations will make wonderful addresses and give high-level speeches. At the theme forum, representatives from international tourism organizations, tourism-related institutions and enterprises of related countries, and experts and scholars will propose forward-looking and guiding opinions and solutions based on challenges brought by climate change to mountain tourism, ice-snow tourism and other aspects, as well as the interrelationship between sustainable tourism and climate change. In the afternoon, a Mountain Tourism Promotion & Sino-European Entrepreneurs Exchange Conference will be held to build a platform for exchange and cooperation between mountain tourism industry in China and Europe. With the purpose of exploring models and paths for multi-field and multi-level business cooperation, IMTA will exchange MOU with the International Nordic Walking Federation (INWA), World Association for Hospitality and Tourism Education and Training (AMFORHT), and SAS Maxi Event’s FRANCE.

Recently, Serge Koenig, a professor from Ecole Nationale de Ski et d’Alpinisme (ENSA) and an expert from IMTA, and Yang Xiaohua, a mountaineering coach from China, successfully summited Mont Blanc on behalf of the IMTA. According to information, this is one of a series of events of “International Mountain Tourism Day 2024”. Following the successful summit of Mount Everest with the “International Mountain Tourism Day” flag on May 29, 2019, the summit of the highest peak in Western Europe in 2024 symbolizes the contemporary move of mountain tourism in the two countries going forward hand in hand with courage. It not only aligns with the sportsmanship spirit of the Paris Olympics but also vividly reflects the synergy and interaction between sports and mountain tourism, symbolizing the ongoing, upward and forward friendship between the Chinese and French people.

Serge Koenig (right) and Yang Xiaohua successfully summited Mont Blanc, France. Image source: IMTA.

In order to deepen international friendly exchanges and promote understanding and respect of different cultures, IMTA will host the “Nice Night” Dinner and the Mountain Community & Art Exhibition. The fusion of traditional Chinese Miao and Dong ethnic songs, dances, Western orchestral music, and the interaction between global mountainous natural scenery and humanistic life, will surely bring unique experiences to the guests. During the event, the Global Initiative of “Mutual Understanding among People through Mountain Tourism” will also be released. Relying on mutual learning among civilizations, the inheritance of mountain civilization will be empowered with new connotations of the era and will contribute to enhancing the integration and mutual understanding of world civilizations.

Dong Grand Choir of Guizhou, China. Image source: IMTA, photographed by Wang Xiao.

The “International Mountain Tourism Day” is an international commemorative day initiated and established by IMTA in 2018. At present, it has become an international platform for the global tourism industry and IMTA members to jointly cultivate, participate in, and benefit from. It is an institutional brand for IMTA to participate in the establishment of a global tourism governance system. IMTA will start with “International Mountain Tourism Day” to promote innovation of the “Mountain Tourism Plus” model, facilitate the development of the global tourism industry, and join hands with others in the industry to work together to build a sustainable tourism community a with shared future.

Media Contact

Organization: International Mountain Tourism Alliance

Contact Person: Zhang Yijing

Website: http://www.imtaweb.net/

Email: Send Email

Country: China

Release Id: 19052412304

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