Is Fantom (FTM) Governance Decentralized or Naw?

By Michael @ CryptoEQ | CryptoEQ | 11 Jan 2023


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Core Report Governance

The Fantom network uses a Delegated Proof-of-Stake governance model to handle on-chain voting and proposal submissions. To participate, you must first stake FTM and then delegate it to a ‘delegator’ of your choice. If a delegator doesn’t vote, the votes are then passed on to the validator.

Fantom governance is designed to support multiple proposals by participating users, theoretically increasing the community’s voice in allowing a larger number of proposals to be issued. However, this doesn’t mean all proposals will receive the amount of support to be voted on.

To facilitate this process, Fantom uses a proposal template that you must fill out. This process comes with an on-chain fee that's later burned. To be considered, the proposal must meet the Minimum Voting Agreement. Otherwise, the proposal gets rejected.

Each vote on Fantom within the governance process is fixed to a ratio of 1 FTM token:1 Vote. This means the largest FTM token holders will control the greatest amount of votes and, subsequently, the greater amount of control over the Fantom network. In other words, governance on Fantom is distributed but largely centralized (concentrated decision-making power).

Fantom governance is unique as it has a form of variable voting. You can vote either with a 'yes/no response or express a degree of agreement with the proposal based on a value between zero (disagreement) and four (maximum agreement). 

SnapSync

SnapSync officially went live in May 2022. The update allows nodes to join the Fantom network at a much faster rate than previously possible. This was visualized in the testnet runs of SnapSync, which saw synchronization times for new nodes reduced from 24 hours to an estimated 7 hours.

The SnapSync update was constructed on top of the Lachesis Light Repeater (LLR) that stores only the minimum required information for the chain to allow far lighter stateless syncing on the part of nodes. The benefits of this upgrade have led to considerable decreases in gas fees and a greater degree of accessibility and decentralization of the network.

Important Entities in Fantom Governance

The following is an overview of all notable entities involved in the governance process:

Fantom Foundation -  Nominates the original Technical Committee, Moderators, and Review Board. Fantom Foundation also holds general authoritative oversight over the Fantom network and governance system.

Fantom itself runs nine different validators representing a total stack of just over 60.7 million FTM tokens. Fantom also delegates approximately 60 million FTM to Fantom validators. 

Technical Committee - Provides advice on the technological feasibility and cost analysis of proposals submitted through governance.

Moderators - In charge of actually introducing proposals for on-chain voting. This includes observing and moderating governance discussions and assisting proposals with traction to move forward in the process.

Assembly - Simply represents the assembly of all token holders who participate in the governance process.

Review Board - Actively reviews decisions voted on by the Assembly and carries final veto power.

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Michael @ CryptoEQ
Michael @ CryptoEQ

I am a Co-Founder and Lead Analyst at CryptoEQ. Gain the market insights you need to grow your cryptocurrency portfolio. Our team's supportive and interactive approach helps you refine your crypto investing and trading strategies.


CryptoEQ
CryptoEQ

Gain the market insights you need to grow your cryptocurrency portfolio. Our team's supportive and interactive approach helps you refine your crypto investing and trading strategies.

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