Openfund Governance

The Openfund platform is essentially a frontend client on the DeSo DEX, which powers Openfund’s fully on-chain order-book functionality.

Changes to the DeSo blockchain happen according to upgrades to its Revolution PoS consensus mechanism, which is described in detail here and here, with all current validators and their staking percentages listed on the DeSo block explorer here. In simple terms, anyone can submit an upgrade to DeSo’s fully open-source code, but an upgrade to the DeSo blockchain goes through only if 2/3rds of the validators (weighted by stake) upgrade their software before a particular block height. This is similar to how other Proof of Stake blockchains work, such as Ethereum and Solana, and it ensures that changes to the blockchain get heavy oversight and buy-in from the major economic players in the ecosystem before they go through. For the avoidance of doubt, it is impossible to upgrade the DeSo blockchain without a 2/3rds stake-weighted majority accepting the changes, noting that the DeSo blockchain is fully 100% open-source.

In contrast, Openfund is an app that is centrally managed. However, to bring the same level of oversight and buy-in that we have with DeSo to the Openfund platform, we have a built-in on-chain proposal mechanism that we have been using to approve all major decisions. Although not strictly binding, since decisions are recorded on-chain but not enforced on-chain, the proposal mechanism makes it easy for the core team to get the buy-in of the token-holders before moving forward with a major change. All past proposals can be seen here in the proposals tab, including the fee switch activation, and the core team does not ever intend to make a major change to the platform without first getting a plurality of token-holder-weighted consensus on the decision (with the exception of critical security issues that may arise and require quick action). The core team takes token-holder buy-in especially seriously where economic issues are concerned.