On-chain governance, most often associated with DeFi, allows stakeholders to vote for changes on the blockchain. Here are just some of the ways DeGov is achieved. Due to more complex smart contract development incorporating oracles and other complex elements, there are more options than ever for organization and participation. DeFi and Governance: Types of Blockchain GovernanceĪs alluded to above, there is no one way that a DeFi protocol is run. It is precisely this factor that the SEC is currently exploring in order to determine how regulation should be handled. While many of the most popular DeFi protocols, such as Uniswap, Synthetix, and Compound use some form of decentralized governance, it should be noted here that just because a project is part of the DeFi sector, does not automatically mean that it follows a democratic structure of governance.Īspects of DeFi, such as transparency and automation may give the impression that a project is democratic, but control of the direction of a protocol may still rest in the hands of the developers and a closed group of major stakeholders. There is no centralized control, and anyone with a stake in the project, no matter how small, can have some part in the future of the protocol. We have governance in every area of our lives, so why it is such a big deal in the context of DeFi? Well, one of the central ideals of many DeFi solutions is that they are run by and for the participants. Implicit in this definition is the element of wide stakeholder participation. DeGov: DefinitionĪt its simplest, DeGov refers to Decentralized Governance the frameworks put in place to regulate the management of decentralized platforms. Some envisage decentralized government, where people are rewarded for proper and pro-social participation, protected from intimidation, and are not sidelined from the overall political process by voter suppression tactics, opaque processes, or special interest groups that have agendas that are ultimately detrimental to society. Is there a better way to run a decentralized autonomous organization, or will better governance involve a trade-off where certain elements are centralized? This is an exciting space to be involved in, as models that allow for better decentralized management could be exported to our real-world political systems. This version of decentralized governance sounds good in theory, but Buterin points out how it can be quite easily manipulated in a number of ways. We are excited to be part of the innovation and exploration of decentralized finance and to give Monero users the ability to use their coins on the Ethereum network.A recent blog post by Vitalik Buterin, Moving Beyond Coin Voting Governance, takes aim at the predominant way DeFi projects are governed through the distribution of governance tokens, which confer voting rights based on the stake someone has in a DeFi protocol. We believe Wrapped Monero will contribute in a big way to something that was created by us but will extend to the whole DeFi community. BTSE will maintain the custody of XMR from beginning to end through the minting and redemption process, and will publish regular cryptographic proof of reserves.īTSE is committed to bring users the best in crypto.
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With millions in fiat and crypto currencies under custody, BTSE has proven to be safe and reliable. BTSE has been a trusted custodian since 2018 as an exchange, with experience securing many forms of cryptocurrencies and digital assets. Due to the strong privacy of Monero, “Proof of Reserves” is more complicated than with open blockchains. In this way, WXMR is always backed 1:1 with XMR.īTSE is the custodian of the Monero backing Wrapped Monero. To unwrap, you can also use the same “Convert” function.
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Wrapping your Monero is as simple as depositing XMR to BTSE, then using the “Convert” function on the Wallet screen. When a user obtains Wrapped Monero, it allows them to provide transparency necessary in a world where KYC/AML is increasingly required because Wrapped Monero has the same transparency as other ERC-20 tokens in the Ethereum blockchain. It gives holders of Monero more flexibility to utilize their tokens without having to sell it for Ethereum or stablecoins, in order to access the many exciting opportunities in the DeFi space.Īdditionally, Monero is a cryptocurrency with historically strong privacy features which sometimes is a disadvantage. Wrapped Monero brings greater liquidity to the Ethereum and DeFi ecosystem. Wrapped Monero (WXMR) is backed 1:1 by Monero and secured by BTSE. Wrapped Monero, brings XMR to the Ethereum network with all the flexibility of an ERC-20 token.