hello everyone hi welcome we're just speaking for everyone we're just waiting
for everyone to join our speaker Dora factory I believe you're coming with the
PC can you please use mobile that's mandatory for being the speaker please
hello everyone once again thanks for joining today we will be discussing the
centralized governance and trust in blockchain our guest speaker Dora
factory I believe you're you logged in from PC so we can't have you as a
speaker in order to do that you have to log in from mobile and would you be able
to log in from a mobile device please with the Dora factory account thank you
so much we'll be waiting a few minutes for that
hi everyone hi thanks for joining I'm you're just waiting for one of our
speakers to come through a technical difficulty and we'll wait for a few more
minutes and then we'll start thank you thank you for understanding
oh hey I believe now it's okay right yes oh yeah sorry about that I'm I was
trying to log in with my phone no worries no worries it happens
Polly Heather would you also mind I'm testing your microphone please just to
make sure that we're good to go yeah sure testing okay yeah we can't we can
hear you well well everyone speakers and listeners thank you so much for joining
today we're excited to have a AMA in the topic of decentralized governance and
trust in blockchain we are very happy to have our guest Polly Heather and Dora
factory to basically discuss this topic and share our views and opinions and
experience as players that are experienced in the industry and part of
our ecosystem so if you don't mind Polly Heather please maybe two minute one
minute introduction of yourself that would be awesome yeah sure thank you so
hi everyone this is Antonio from part of huge our currently VPR product here being
the space for around since around a 2017 where we have seen multiple cycles
of space and we have seen the evolution of different innovative technologies
that's where around two about two years ago when we started a project Polly
Heather and build a trustless bridge so we aim to solve a problem that the
interoperability sector when you want to make for example crossing transfers
you have to trust someone since we are talking about trusting blockchain today
what we are offering is that we would want to eliminate chest assumptions
when you are making crossing transfers or when we are making any multi multi
blockchain transactions the only thing you should trust will be the blockchain
themselves any third-party argument blockchain will increase systematic risk
in the crossing transfer system so that's when we are saying about trustless
blockchain and trustless system the most secure thing is something that you do
not have to trust at all it just works just as mathematics so here we are we
are building a trustless interoperability and we are contributing
to the balance to the BNB chain ecosystem to make it more decentralized
and more trustless on the way thank you yeah yeah thank you so much for that
absolutely agreed on the point that like the reason for being decentralized is
that we we are seeking a way of that like peers do not have to trust peers
it's a system where it works by itself and the chance of failure is not
depending on other people where the system can be corrupted etc so yeah thank
you so much for joining and also contributing to BNB ecosystem yeah Dora
factory also would love to hear a two-minute intro from you as well once
again thank you for joining thank you my Matt and I'm very glad to be here so
I'm Eric I'm from Dora factory and so everyone probably knows about Dora
hacks Dora factory originated from Dora hacks the global hackathon community
and one of the most active web 3 developer incentive platforms so what
Dora factory is doing is to solve or to provide solutions to an very important
problem of web 3 open source communities and ecosystem funding that
is how can we make open source funding more sustainable and there is something
special about web 3 here and we can build this model and because it's crucial
for the development of web 3 and maybe more generally open source communities
as a whole so Dora factory builds two products to address this problem the
first product is called public good staking and the idea of public good
staking is to use the native incentive from from blockchain rewards to
incentivize open source communities where we can validate and secure the
new generation of proof of stake blockchains and now it's one of the
fastest growing staking infrastructures in the space and we have Dora Vota it's
a decentralized governance option that hosts advanced governance technology to
improve funding efficiencies through effective and efficient government
decentralized governance yeah so that's what we're doing wonderful wonderful
yeah thank you so much really appreciate that um so yeah I'll start with the
first question please for polyhedra could you provide like brief
introduction to the centralized governance for those here who might be
new to the concept sure so well I'll start from something more high level
then Eric probably only can provide something more detailed so for
decentralized governance decentralized governance refers to a process of
decision-making in a distributed network well usually we do it through blockchain
so through this decentralization decentralized governance process
controls and decision-making process are spread across a the entire network the
entire blockchain rather than centralized on a single entity or a
group so usually for decentralized governance especially on the blockchain
we leverage smart contracts and consensus mechanism so that we can have
more well more democratic more transparent decision-making process so
indeed decentralization decentralized governance process allows participants
or especially token holders on the blockchain network settings usually allow
the token holders participants to kind of propose to or to vote or to conduct
changes to this entire network through different governance mechanisms usually
like token token staking for voting or other other processes where this
decentralized governance process does not need to that's not require existence
of a centralized entity where the governance process are composed of
individuals individuals and individuals who are making decisions on
their own so I think this is something wonderful for blockchain technology
where where we are able to get rid of a centralization risk where each user are
able to make their own decisions and all those single decision combined will make
changes to this entire system so I think we have seen many models of
decentralized governance and in the blockchain world I think it executes
very well where we are saying code is law so when we code the roles
into the smart contracts everyone has to follow it there are no exceptions and
it treats everyone fairly so that's the power of decentralized governance and
that's a move to a more democratic and more transparent decision-making process
yeah great one great one thank you so much yeah and another good example would
be you know DNB chain right here at the centralized blockchain foundation there
are multiple contributors we are not run by one decision maker it is the
decisions are mostly made through the community and there's like a voting
process where contributors all vote and stuff so it is really important to
tackle the issues of being centralized and we definitely agree on the on a
similar vision where the future is definitely more secure using blockchain
technology and Dora factory would also love to hear your take on this as well
please yeah thanks Antonio and my Matt I think so that's already a very good
introduction and and definitely decentralized governance is the it's
very useful in terms of engaging in your existing communities such as BNB
chain is a very good initiative in the first place so in general I think when
when you have decentralized financial infrastructures like where your one
blockchains or decentralized applications like those you nationally
have decentralized communities and the communities often or mostly scattered
distributed and they could be coming from anywhere in the world so so how how
do you make important decisions are and and also make decisions in a
decentralized environment is kind of important and that's where decentralized
governance comes so currently I think the decentralized governance protocol or
technology stack consists of a wide range of technology and mechanisms that
enable people to make collective decisions in in that decentralized
environment whether that's for a for a blockchain infrastructure itself or for
a community a doll or or some other type of scenarios so so so with this smart
contracts are or more generally a blockchain programmability you can
create something that's very interesting but not implementable before we had
blockchain technology for example you can implement something called the tech
photography where you use a prediction market to governize your community which
is kind of unique to the blockchain community and probably later I will
introduce even more you can also leverage zero knowledge proof to add
privacy and at pollution resistance to voting process which makes the governance
process more honest and more secure so I think right now we are in a very early
stage of developing decentralized governance technology and this
technology could be used in a very wide range of applications in web 3 and
beyond thank you thank you yeah definitely agreed you know as of now the
decentralized governance is used in various fields in web 3 we see that but
in you know in the future I believe blockchain technology will be leveraged
to be used for decentralized governance processes for you know multiple
verticals different types of industries that haven't been introduced to this type
of system but I definitely see this growing and I'm bullish on this on the
future yeah thank you so this has been a great intro so as a next question in
your opinion how does the centralized governance come contribute to do
evolution of blockchain technology itself would love to hear it from you
probably have to please yeah sure of course well since I'm working on a
product side I want to walk you on a often deal with user experience
optimization and I talk from a user point of view so before well before we
are really implementing decentralized governance and before the existence of
blockchain when as a user went on to participate in something I worry about
if this process is controlled by some powerful entities that I did not have
change I didn't have the power to make changes or will my decision power being
taken back by someone if they well if they don't want me to so blockchain
actually offers this decentralized governance tool for example in
decentralized autonomous organization DAWS or other decentralized
protocols where users will have the power to make decisions and we can see
how our decisions matters in this blockchain community so that's something
interesting about blockchain where everything on blockchain is actually
transparent then we have this decentralized governance tools so then we
have a transparent and also Democrat environment for users to make real
decisions and this is something very exciting the power of making decisions
the power of building community and building a community that is it is
responsible for individual users and will be decide what will and everything
will be decided by individual users that's something very intriguing for
the community to try out since well we are talking about democracy every day
and we'll in the traditional web to world democracy is more paradox because
world democracy is usually proposed by a more powerful entity a powerful
centralized system while I'm deep in the blockchain space for the very first time
well I can say for the very first time in human history we have something that
is truly democratic as the decentralization power then based on this
decentralization this decentralization power attracts actually users a lot of
my friends when we are very early in the blockchain space what we believe
blockchain brings is this decentralized power decentralized governance so in the
in a sense this this decentralized governance actually brings more users to
the web3 world and those more users both web3 world to make it more
decentralized to make more fair to make it more user-friendly and this will be a
positive loop for users to when more users comes in it becomes more
decentralized it becomes more stable it's more stable it attracts more users
to come in so I think we are in a positive loop right now and I believe
this positive loop will bring more changes to our community and will make a
lot of wonderful things thank you
appreciate it appreciate it yeah you know the current versions of how these
centralized governance is done maybe in the future also that part will evolve
the general principles like I believe in the in the in the sense of what it
serves will remain similar to you know making sure that like you don't need to
trust third parties etc will remain similar but also maybe the ways of
execution and could change and Dora factory also would love to hear from you
in terms of how does decentralized governance contribute to the evolution
of blockchain technology yeah sure so so I think D gov technology spirit is
pretty much inconsistent with the with blockchain tech itself so the
blockchain consensus protocols are designed to coordinate a distributed
network of machines and you have decentralized financial infrastructure
out of that but D gov protocols are coordinating people in a decentralized
communities and help people within a community reach consensus among these
people within this community so but you'll know that blockchain protocols
are maintained by people so so decentralized governance is kind of
important one example to illustrate this is in the early days you had only a
couple important boxes and if people have disagreement over some important
issue you had a hard fork and and you saw this during that doll hack hard
fork which created the big chaos in the certain community and the Bitcoin BCH
hard fork etc so um so there was no governance so if there was some major
disagreement hard fork was the only way you can go with but with decentralized
governance protocols people can actually reach consensus on human level
and in a decentralized community this is actually a very big progress because it
in turn contributes to a new generation of blockchain technology and and
partially that's in line with the multi-chain and action movements now
users can choose their favorite chain or favorite communities to skin again
and this is largely because of the development of decentralized governance
and and we are still in the very very stage of of this movement right now
thank you so much thank you appreciate it I'll get to the next question please so
would you be able to share an example where the centralized governance has
made a tangible impact on a project or community we'll start with you please
polyhadra yeah sure well since we are here today and I'll share a little bit
how decentralized governance actually impacts BNB chain as we build a lot on
the BNB chain mechanism consensus mechanisms so well BNB has composed of a
lot of different nodes and those nodes vote on different important decisions
well so one thing we are when we talk about decentralized governance especially
when I talk about for example voting we do often implement that with a mechanism
called or token staking because well the blockchain space is very
decentralized as we know and we have numerous addresses on the blockchain
where well each address may connect to a real person or real entity so it comes
the problem that how you identify the real people on the blockchain because
well I may own a lot of different addresses and I can actually create a
lot of different address right now out of scratch so however we do want to
control the voting process so that everyone or every entity should host a
vote that's when we introduced mechanism of staking because if you're staking if
you stake some token we will know that you are a true user because otherwise
you know we do not have if there's a blank address we cannot verify that you
are a true user you are you are a participant in the ecosystem so that's
how BNB chain works here on BNB chain there are a lot of nodes and nodes stake
BNB on BNB chain to make decisions and this this BNB chain I think is a very good
example of how we implement decentralized governance and how BNB
chain is promoting decentralized governance and making the system more
and more decentralized which means the system is also being more and more
robust and more flourish when it is further decentralized so the impact of
decentralization is that when we build on the BNB chain we are building on a
more stable community and more stable ecosystem where the voting power
distributed on all different nodes so we rely on this consensus mechanism to
build our infrastructure and when we have a better and more decentralized
consensus it also makes developers more and build on a more stable ecosystem and
also trust the the the underlying consensus because since today's
basis is about trust so we think that trust can only well full trust can only
be achieved when one day that well the system is it is decentralized enough
we know that a single point failure wouldn't interrupt the system itself and
we're happy to see that BNB chain is being more and more decentralized and
the system is being more and more stable so we wish a BNB chain could be a well
could keep evolving and could we keep building on this more and more robust
system on BNB chain in the future thank you well thank you so much for that
example yeah as you mentioned BNB chain is a good example of how a
decentralized governance system works there's no individual that has the power
to decide what's going to happen to BNB chain how BNB chain is run so it's
basically a community driven ecosystem and as you mentioned decentralized as
well so appreciate it just something that I was supposed to say in the
beginning apologies that I'm late nothing said here is financial advice
and users should always do their own research before interacting with the
protocols just a kind reminder to everyone thank you and Dorna factory
over to you please for the question yeah thanks for Matt yeah I think like
in terms of examples are too many too many examples and especially for Dora
factory because of because of Dora factory's public goods taking we are
actually actively engaging many ecosystems our ones our tools and the
options and the way we do vote for their proposals every day almost and they
are very trivial ones like there is there are software upgrades the trivial
upgrades and very minor decisions but there are also bigger ones so like a
more trivial one is for us for example two weeks ago our proposal on
injective is a proposal I think three four one task in which we proposed to
deploy a quadratic funding and quadratic voting smart contract and we
will use that smart contract to start an injective native quadratic funding round
the proposal was passed with an overwhelming turnout and other passion
from the injective community so so I want to mention this example because I
think sometimes we think of governance only in terms of governance itself but
actually there are there are other good properties out of having governance
proposals so if you have an initiative and and you want to let that initiative
know within that community some community going through governance is
actually a very good way to to let everybody know about your initiative and
of course there were bigger like examples of governance for example the
controversial cosmos have prop 848 I think that was passed in November last
year which reduced inflation from 20% to 10% on cosmos hub which is which is a
very big thing for the whole ecosystem and and that impacts of the evaluators
and the whole token economics but that was passed and there were also very big
debates during like that it was that was earlier during the cosmos atom 2.0
proposal which didn't actually pass right so however the point is people can
move on together right with with decentralized governance and people do
not have to hard fork they do not have to fight date they they can do it in a
very democratic way and they can lead together with a decision that is very
important so but just in case so if someone really doesn't like the
decision that person can always sell the token and join another community which
the benefits is brought by I think the multi-chain action movement on which
brings us a lot of more choice of more communities to join but in general I
think the decentralized governance technology already gave us a lot of
freedom and gave us a lot of progress in the blockchain community
thank you thank you for the answer good points definitely guys so as the next
question what trends do you see emerging in decentralized governance and
how might these trends shape the future of blockchain technologies let's talk
with you please Polly Hedra yeah sure so as an infrastructure as an
interoperability infrastructure provider one trends we're seeing in
decentralized governance and also in the blockchain space is the cross-chain
governance or multi-chain governance where well blockchains well as we know
blockchains natively they don't talk to each other so a user user group on a
blockchain they are separated between another user group on another blockchain
however we have those many users and when we want to make decisions the
decisions especially if we are a for example if we are a doll for for games or we are
actually we are a doll for food well food are universal across all different
blockchain systems for example if I like steak it doesn't matter which blockchain
I am on well I just would like steak I vote for a steaks so we are offering
this interoperability solution that we actually we would like users to make
decision on any blockchain they want then we are able to synchronize those
decisions across our different blockchain systems so that well we in
this case we can build something more universal and something more attractive
to users that well as for example as a user on BNB chain I can also work with
users on Ethereum I can work with users on Solana that together we are able to
make a decentralized autonomous organization that votes together on
something so we're offering this cross-chain interoperability that my
vote my decision BNB chain can also work with my friend decision Solana so that
together we are able to participate in something that it a doll that spans
across those different blockchain networks I think this is a trend we are
seeing that when the entire web 3 space will bigger and bigger we are aiming to
eliminate the barriers between different blockchain systems so that
especially for our end users well choosing a blockchain system shouldn't be
your limitation it should be your advantage if I choose BNB chain ecosystem
to to deploy my apps on to to to keep my assets I should be able to enjoy the
benefits of BNB chain ecosystem while I am still able to explore the
possibilities on other ecosystems or I'm still able to explore the governance
tools on all those different ecosystems so that's the power of cross-chain
governance and polyhedra we are aiming to provide this multi-chain
interoperability to enable a smooth and more user-friendly cross-chain
governance solution and we are seeing some of the developers already working
towards this resolution thank you thank you over to the factory please sure yeah
so so I think I cannot speak for the whole industry but for us the the
development of zero-knowledge proofs and how it can be used in decentralized
governance is quite important so for now Dora Bota is developing a general
interface for MACI which is which stands for minimal anti-collusion
infrastructure originally proposed in the Ethereum community so so I think we
currently have the most comprehensive toolkits for MACI towards a user
interface side so with zero-knowledge proof we can make voting and decentralized
governance privacy preserving and also collusion resistant so so I think that
kind of trend is something we really care about and and other than the so so
so for for example for our team developing this technology itself is
the is is it's interesting just from the engineering perspective but also the
progress of adoption is it's quite important as well so we have been
developing for example MACI for for a few years and East Denver in 2022 first
adopted MACI I was in a medium scale that's pretty early to help incentivize
the hackathon developers and their their sporked-down contributors could be
widely stated and they could vote anonymously and that run was very
interesting and later so so so the East Denver MACI run was deployed on poly
down back then about later we had a lot more runs we had runs from 0x we had
runs from from from open sea and and DoraHacks has has an initiative called
Dora Granda which entirely is governized using MACI and that MACI system is still
working and is deployed on BNB chain so so given all these examples I don't
think what we should think about is how we can develop more advanced technology
stack for governance and use them to drive adoptions within the web tree
community so that more people could could participate in interesting
initiatives like hackathons and developer funding initiatives thank you
thank you and of course one part that we can't ever skip that affects the whole
industry and also this part is compliance and regulations so in your
opinion how do regulatory considerations includes the design and
implementation of the centralized governance model and how are you
navigating these challenges polyhedra please yeah sure so we're talking about
nbu next billion users every day well as we know the world we has seven eight
billion people on the earth then well where we acquired the next billion user
we have to acquire the next billion user from web to your world from the well
what we call the traditional world well in web to world there are there are
countries there are governors and they have their policies so when we want to
further promote the entire web 3 space we have to meet sort of regulation
policies it varies from countries to countries it varies from governance to
governance so I think the challenge here today about regulatory process is about
communication how the blockchain technology how the well we are
infrastructure providers we are decentralized governance builders how we
communicate and negotiate with governance how we can build a solution
that is for example that is decentralized enough while it also meets
regulatory process different countries and regions so one thing we can utilize
and well as the refractory suggesting is the power of zero knowledge proves we
can actually make these proofs where we are able to prove some certain state to
the governance to the governors that we do have the would you have some of the
process of blockchain they are valid and they can be verified where we do not need
you to disclose sensitive information to protect our users privacy to meet the
regulations so in general what we think is that the regulation process is
something we must go through and how we navigate through them is more it's more
of a choice of like which technologies we use and what utilities we add to our
current system to make it more compatible with the traditional
traditional ecosystem and also how we can attract the world we set web to users and
invite them to web 3 and how we make products and services that's also compatible with web
to regulations so well as probably here as any as an infrastructure company we are also
talking to different governors about how we can make an infrastructure that is acceptable
by the different governance policies while we are still able to provide the best services
to our web 3 users there are a lot of trade offs going on there are different pros and
cons we are considering but we believe that eventually we will be able to acquire the
next billion users from the web 2 world and eventually we will be able to work with all
different regulatory policies across the globe so I think we are working towards this future
where everything is more interoperable it is an interoperability that not only limited to web
3 we are also extends the boundary to web 2 to the traditional world and well we're thinking BNB
chain is also standing at this frontier where on BNB chain there are a lot of different projects
and all those different projects they are also working with different regulatory process where
we are seeing a lot of well the next billion users a lot of users when they come to the blockchain
from web 2 space they are landing on BNB chain so that's one of the reasons why we choose BNB
chain for this florist and robust ecosystem and for the possibility that we are able to build an
ecosystem that works for everyone for web 2 users or for web 3 users for individuals for entities
for governments and for different enterprises so here I think future is bright thank you
thank you so much and over to the refectory please
yes thanks so I think there are other sections in the industry that are facing or will be facing
regulatory challenges but in general I think all the problems will be solvable because
because what we can see in the market right now is there is a there is a great optimistic
view towards the whole industry and I think in general most of the regulators will be working
with the industry to eventually navigate and find out the right point for regulation and
personally I'm also very optimistic about the industry
under regulation as a whole so but in particular we in particular I think
governance tech is the is helping the situation here and over time it will be one of the most
important things to make sure that decentralized communities and decentralized financial
infrastructures are aligned with the regulatory requirements because eventually what regulation
stands for is the its interest of users but the industry also stands for the interest of users
just in different ways the the regulatory people they care more about the safety side
but industry wants to innovate and wants to provide users with better and more progressive
products that could lower people's cost of living and eventually connect more people
to the financial prosperity so in that sense the regulatory environment will eventually very much
focus on how the product can be more or can be safer to the users and
perhaps how these communities can fulfill their obligations that they promised and in order to
achieve this so I think a big a very big debate in the regulatory issues is for example whether
some token is a security versus the commodity but the reality might be the the real issue is not
the security versus commodity debate the real issue is whether this autonomous network or
decentralized network can actually self-sustain and can can actually self-governize themselves
so here the governance technology is very important exactly because of that reason
because it means that if we have proper decentralized governance installed or instated
in these protocols or in these communities that means they are actually decentralized
and decentralized governance is probably the most important technology to ensure that
decentralization and and it's really going to help the industry to eventually
sustain and and and be prosperous
thank you so much thank you so much well yeah that's definitely an important one for the whole
industry regulations regulations regulations and compliance well everyone we've come to the end of
our ama i hope you guys enjoyed this as much as i did thank you so much to our speakers polyhedron
door effect your guests and everyone that joined the spirit the time to listen to this we'll be
keeping working on you know other amas in the near future and yeah wishing you all a great week ahead
thank you thank you have a good night thank you