New Mechanism Proposed to Improve Layer 2 Blockchain Governance

AI Review

According to PANews, three anonymous cryptocurrency developers have proposed a new mechanism called “Panoramic Governance” aimed at increasing governance participation and growth of protocols on Layer2 blockchains. The white paper, authored by 0xCygaar, 0xBeans, and 0xMons, states that Panoramic Governance can be implemented on any Layer2 blockchain using native governance tokens and a sorting system. Users pay a gas fee to achieve faster transaction sorting and reliable pre-confirmation.

Panoramic Governance consists of two interdependent systems: one that distributes sorting fees to governance voters who actively participate in the network, and one that allows voters to direct token emissions to protocols built on a given blockchain. This mechanism increases the demand for block space, which results in higher sorting fees. Consequently, the income of active governance voters increases, incentivizing them to allocate more emissions to successful on-chain protocols.