Source: ZKNation Blog; Translated by: Wuzhu, Golden Finance
The ZKsync governance system is now live. This article explains what governance is, how it works, and outlines the principles and choices involved in governance.
ZKsync governance design concept - elasticity, distribution, and mission consistency
ZKsync’s true on-chain governance embodies the core properties of resilience, decentralization, and mission alignment. These properties reinforce the values of ZK Credo — the right to fork or exit, and the ability for the community to verify decisions and actions in a trustless manner.
Resilience: ZKsync’s governance system is built to last. The system includes multiple built-in protections that are automatically enforced on-chain to address risks and ensure smooth operations on the blockchain. Even if the governing body or its members become adversaries, they cannot unilaterally prevent the protocol from continuing to evolve.
Mission Alignment: ZKsync is based on the vision and principles articulated in ZK Credo. Everyone involved in governance, regardless of which organization they belong to, is expected to act in accordance with these shared values and responsibilities, and the governance mechanism contains a set of checks and balances to enforce this.
Distributed: ZKsync’s governance is distributed across multiple blockchain-based institutions, including various Ethereum communities from all corners of the globe. This setup is designed to ensure a healthy balance of power and prevent any single group from having too much control.
What makes the ZKsync governance system unique?
Three-body governance
The ZKsync governance system is designed around the principles of separation of powers and checks and balances. By design, no single individual or entity has the power to make changes to the ZKsync protocol. All changes to the protocol must be approved by three independent bodies that exercise independent judgment and control over their decisions: the community of token holders, a group of security experts, and a group of high-profile, values-aligned individuals who ensure proposals are aligned with ZKsync values.
The three bodies in the ZKsync governance system are the Token Assembly, the Security Committee, and the Guardians. Each plays a critical role in ensuring durable, distributed, and mission-aligned governance.
Two of these entities, the Security Committee and the Guardians, use an innovative structure that combines smart contracts and legal entities. These entities, sometimes referred to as "BORGs" (or Blockchain Organizations), are legally governed by smart contracts through technology-specific rules embedded in their charter documents. The behavior of their members is governed by strict service level agreements and codes of ethics to ensure prompt, fair, and efficient decisions are made in the best interest of the ZKsync community.
1) ZKsync Token Conference
The ZKsync Token Assembly includes token holders who delegate voting power and representatives who receive this voting power. Unlike token governance organizations that only allow holders to vote on the allocation of their funds, the Token Assembly is also authorized to submit and vote on proposals to upgrade the protocol, tokens, and governance systems.
This is perhaps the most important aspect of the system: token holders and their representatives can initiate ordinary upgrades to the ZKsync protocol directly on-chain, rather than relying on a single multisig. Once a proposal is submitted for a vote, the process involves two other completely independent groups.
This is true on-chain governance, and it is the standard that every protocol should strive to achieve.
Another innovation of the Token Assembly approach is related to the legal protection of delegates. Before submitting a proposal or voting through the canonical governance portal, each delegate can choose to become a member of the ZKsync Association, a non-profit association with no owners. This is a new model that aims to address the personal legal liability that delegates may incur as a result of decisions made by the Token Assembly.
2) ZKsync Security Committee
The ZKsync Security Committee is a group of highly skilled and skilled engineers, security auditors, and security professionals who are responsible for maintaining the technical security of the ZKsync protocol and network. This body is responsible for reviewing and actively approving protocol upgrades approved by the Token Assembly, and has the authority to freeze the protocol and submit necessary time-sensitive upgrades to address imminent or active security threats.
Their power is limited: they cannot unilaterally submit and approve upgrades. Even emergency proposals require approval from the guardians described in the next section and a third reviewer. Currently, the newly formed ZKsync Foundation will serve as the third reviewer.
3) ZKsync Guardian
ZKsync Guardians ensure that ZKsync governance proposals are consistent with ZK Credo's values. Their primary power is to exercise veto power over proposals. Functionally, this means that Guardians can constrain other participants in the governance system to ensure consistency and protect the protocol. This constraint also helps curb governance attacks against the protocol that attempt to manipulate the protocol or tokens for personal gain.
It includes individuals from around the world, each of whom has a deep commitment and connection to the project, and who live and breathe Cypherpunk values.
ZKsync Governance Proposal
The three bodies of the ZKsync governance system — the Token Assembly, the Security Committee, and the Guardians — work together to issue, approve, and execute three types of proposals: ZKsync improvements, token plans, and governance advisories. The Token Assembly can submit proposals and approve (or reject) them. All proposals can then be vetoed by the Guardians, and protocol upgrades require approval from the Security Committee. In short, no single person or group of people has the power to unilaterally propose and approve proposals.
ZKsync Improvement Proposals (ZIPs): This includes all regularly scheduled protocol upgrades. ZIPs can be proposed by Delegates and must be actively approved by the Safety Committee, or, if the Safety Committee is unable to attend due to special circumstances, by the Guardians.
Token Plan Proposals (TPPs): Delegates are invited to submit a Token Plan for approval by the Token Assembly. If approved (i.e. successfully passes Guardian review), the Token Plan will allocate the right to mint and burn ZK Tokens, thereby activating new mechanisms for ZK Tokens. All Token Plan Proposals (“TPPs”) must comply with the Token Plan Guidelines and help achieve goals that support the ZK Credo vision.
Governance Advisory Proposals (GAPs): The Governance Operations Governor manages governance related to off-chain operations unrelated to protocol upgrades or token initiatives. These activities may include approving ZK Credo or nominating new Security Council members. Because the results are recorded on-chain, GovOps Governor voting results may be relevant to other contracts built by the ZKsync community. For example, a DeFi project could have key parameters (interest rates or fees) directly controlled by the GovOps Governor. Again, like ZIPs and TPPs, GAPs are subject to review and veto by the Guardians.
A community-driven future
This is the result of many years of collaborative efforts from a global community of contributors, and embodies the decentralized spirit that the crypto community pursues.
ZKsync governance is more than just an on-chain contract that manages the ZKsync protocol. Like the protocol itself, it is a conscious journey of innovation designed to have real-world impact. We invite all members of the ZKsync community to participate in this new structure and help shape the future of the network by participating in discussions on the ZK Nation forum.
