TON Foundation introduces new governance model called Society DAO
The Open Network (TON Foundation), a blockchain platform linked to Telegram, has introduced Society DAO, a new governance model designed to transform on its path to decentralization.
TON Core, TON Society, Wallet in Telegram, and the recently launched developer collective, TON Studio, are the four founding members of the Society DAO.
Society DAO governance model
On November 1, the TON Foundation announced the launch of Society DAO, its decentralized autonomous organization (DAO), and governance framework. The purpose of this is to avoid having a centralized foundation that could lead to a single point of failure and instead develop a more decentralized governance model.
According to the TON Foundation blog, the new governance model called Society DAO wants community members to actively participate in project management, resource allocation, and decision-making in order to improve autonomy and growth within the TON ecosystem.
Society DAO’s primary objectives
President of the TON Foundation Steve Yun and Ton Society co-founder Jack Booth said Society DAO aims to address a number of issues pertaining to fair access to capital and decentralization, enhancing participation, transparency, autonomy, and competition.
Society DAO's main goals are to "establish TON as the most stable and scalable blockchain, position TON as the gateway to real-world cryptocurrency use cases, and grow the developer and user community in app markets." Society DAO will release its key initiatives and objectives for the first half of 2025 in January, and it will solicit feedback from the community to help determine its strategic plan. During this six-month assessment, the DAO intends to obtain input from skilled participants in areas like identity solutions, DeFi, app development, marketing, and stablecoin integration.
TON Foundation highlights certain centralization risks
In the announcement on Friday, Yun and Booth emphasized and warned about some of the risks associated with centralization in the TON ecosystem. According to the foundation, a more flexible model is now necessary to support the ecosystem's growth, even though centralization was effective in the early phases of its development.
Additionally, it stated that many founders have relied on the foundation as a primary source of funding and support for their success over the past year, but that a layer 1 governance model faces limitations as an ecosystem matures. To address these challenges, the TON Foundation and TON Society are putting open-source capital access, transparent resource records, and incentives in place to meet specific key performance indicators (KPIs).
Booth and Yun added that The TON Foundation is promoting a community model that gives the community power over how resources are allocated. This approach empowers proven and respected community members to coordinate goals, vision, and strategies, collectively determining resource allocation in alignment with the overall growth of TON.
Members can submit proposals that align with TON’s objectives
To ensure that each proposal is in line with TON's overall objective, members are able to submit strategic proposals that outline specific goals, timelines, and measurable results, the post added.
According to the announcement, specialized working groups made up of DAO members with relevant experience will evaluate these proposals. Approved proposals will receive funding from the TON Foundation, and the community team will be responsible for monitoring developments to ensure alignment with the initial objectives.
The introduction of a new governance model coincides with the announcement from Wallet on Telegram, a founding member of Society DAO, about its significant update that integrates its custodial and self-custodial wallets. TON Space, a separate self-custody solution that has been in beta, will be integrated with Telegram's default custodial wallet solution, which was previously only custodial by default.
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