As mentioned in the latest CageChain weekly newsletter, the Tao Network's governance dapp, Shifu has caused quite a stir this week. So what does governance look like on the blockchain that has billed itself as, "the smart contract platform for the music industry, by the music industry?"

This is the Way

Along with some great new memes being created, Shifu has a slick dashboard that will allow $Tao holders to stake and take part in various initiatives and proposals:

Governance- Layer 1 (or base) blockchain protocols will maintain data consistency across hundreds of nodes via consensus. Governance is the method by which the rules which those nodes which determine valid consensus are selected. These potential validator nodes are called Candidates.

Candidates- Candidates are full nodes which, when selected by voters, are permitted to sign and validate new blocks of transactions. When a Candidate is selected it becomes a Validator. There are 150 total Validators allowed at maximum at any given time and it requires a minimum of 100,000 TAO to become a Validator Candidate. The 100,000 TAO required to become a Candidate is locked in the governance smart contract and cannot be removed until the Candidate resigns.

Stake- A Stake is an amount of tokens designated to a Candidate by a Voter representing an amount of financial support for that validator which entitles the Voter to a proportional share of rewards. A Stake may be "unvoted" and returned the the Voter, which takes about 5 days.

With an API currently under development governance through Shifu is on its way to picking up more users and is yet another step that will continue to enable DeFi for the entertainment industry. The Tao token can be found on two US-based exchanges, Alt.Market and q-Trade.