NEAR — direction
In our previous two posts on this subject we explained:
- The essence of the NEAR protocol and how its focus on usability is a major differentiator.
- How an ever widening range of real-world applications can be built by developers self organized into supportive specialized communities
These take NEAR a long way. There remains the question though, of which way?
Direction
Who wants direction?
In the previous post we made the analogy of the NEAR Guilds being a beneficial virus.
OK, I hear you say, a virus does not need direction, and indeed it doesn’t. Bear in mind that not all viruses are successful. Imagine if they were more targeted, I shudder to think of the consequences in health terms!
This is where the analogy breaks down a little, surprise, surprise.
Our need for direction depends on maturity. It is a difficult call but you could say that NEAR, like a lot of other protocols, is still in its infancy. A stage at which guidance is useful.
Initially, governance activities are coordinated by the NEAR Foundation, an independent nonprofit entity whose mission is well-aligned with improving the long term usefulness of the ecosystem.
Ultimately, such decision making needs to be decentralized, requiring deliberation and discussion, which can slow progress and needs to be counterbalanced by a bias for efficient execution.
Governance work so far
Setting up such decentralized governance with the appropriate involvement of all stakeholders is one of the next big steps for the protocol. It is vital because it makes the most effective use of the resources available.
Practically, given the following, NEAR governance is beginning to emerge:
- Guilds are being established and cultivated
- Certain basic decision making mechanisms are in place
- Subject to community endorsement, a new Treasury is beginning to evolve
Is the governance work so far sufficient?
This is best answered by considering whether the current structure can manage “independently”, to which the answer can be derived from the following:
Is there:
1 Scanning of the environments to encourage adaption?
2 Good, regular communication of all important activities?
3 Effective measures of progress?
4 An agreed set of decision making principles?
5 Clear plans and alignment?
If, when considering these questions, we are concluding that further work is needed before we can deliver an emphatic yes, then there is certainly more work to be done on Governance. However, it is clear that good strides are being made and that this work will play a significant strategic role in NEAR’s formative evolutionary steps.
Such governance needs to adhere to the great principles set out in the NEAR white paper:
- Decentralised
- Effective and efficient
- Agile
- Adaptable
With the imminent implementation of a NEAR treasury, this starts to cover off one important area, the management of funds and resources. It is therefore vital that all NEAR stakeholders share their responsibility in assessing and voting on this initiative.
Next Steps
The achievements made so far need to be followed by active work on the most appropriate governance model that meets the true needs of all of NEAR’s stakeholders.
Given that decentralized governance is notoriously difficult, in a subsequent post we plan to cover HOW a governance model could be developed by the community. For now it is worth reflecting on the unique challenges faced by NEAR. The most significant of which is, if we consider each Guild to be a Decentralized Autonomous Organization, a DAO, then how does governance of and between DAOs operate?
In a centralized heirarchy there are excellent models such as the Hoshin Kanri method, an effective tool for strategic management which when implemented properly, bridges the gap between strategy and execution by creating alignment and focus. Could it work for individual Guilds, could it work collectively for Guilds?
Even though for now there are more questions than answers, the good work that has started needs to continue. As it does we will bring further news.
LunaNova will continue to keep you informed of developments in NEAR’s governance. If you have any questions about this or any aspect of our NEAR validator services, please contact us via our website.
A pdf detailing our NEAR validator service is available here.
