Tezos - Foundation surrenders Veto

Tezo Foundation have just issued an email statement to holders, surrendering their onchain veto.

An extract from email:

"Although previous leadership at the Foundation had considered retaining a veto power over protocol amendments for one year, we have decided not to retain that right. We believe this decision will further support the decentralized nature of the Tezos project."

What this means, is that on-chain governance will be solely the community’s responsibility. The foundation will still fully support the Tezo’s chain through technical and community support i.e through grants and assistance. But if the community decides an update or change to protocol, the Foundation will no longer be able to have the option to veto it.

This also has a profound effect on the perceived governance model. Effectively removing the foundation of decision powers for the Tezo’s chain and placing them solely on the wider community, creating a pure decentralized system.

With no head of the decisions involved on the chain, it may also severely affect any current Tezo foundation lawsuit. The SEC recently announced that decentralized blockchains, are not considered securities. They cited Bitcoin and Ethereum as examples. Now Tezo’s in theory will also not be classed as a security, due to the same decentral consensus nature.

They also recently forced post ICO KYC for all the investors, to gain access to the Tezo Tokens. Unfortunately this corporate approach was not welcomed by most, as referenced by the some of the unhappy posts by the Reddit Tezo’s community.

But it points to the Foundation in having a strong legal team in place, and being that 2018 seems to be the year of crypto regulations. It seems positive that the Tezo’s foundation seem to have taken various legislation, very seriously.

Currently Tezo Futures trades for $3.75, with mainnet due for release in the next few weeks.

It will be interesting to see if Tezo’s can compete with the likes of EOS, Lisk and Ethereum - All with varying governance models in place, but in our opinion it appears each may have its place.

Posted on behalf of GetBlockChain
https://www.facebook.com/GetBlockChain/