Our new governance model is built on four key principles, or "North Stars," to ensure it serves the best interests of the community:

• Use Existing Tools: We want to avoid building complicated, custom tools. By using existing, proven systems, we can make the process more reliable and easy to use for everyone.
• Captureless and Secure: The system is designed to prevent bad actors from taking control. We've built in safeguards to protect the community from malicious attacks.
• Anti-Plutocracy: We're moving away from a system where the wealthiest stakeholders have all the power. Our new model ensures that influence is more evenly distributed, giving all participants a meaningful voice.
• Represent All Stakeholders: The system is structured to make sure that different groups within our community are all represented.

How the New Model Works?

The new system is based on validator-level delegate voting (a common theme in cosmos ecosystems) with a special twist called quadratic voting. This is what makes it both fair and secure.

1. Validators as Delegates

In our new system, validators (the same entities that secure our network) will be the ones who vote on proposals. Instead of token holders voting directly on every proposal, they'll delegate their tokens to a validator whose values and opinions align with their own.

• This is much like electing a representative. You choose a validator to vote on your behalf.
• You can change your delegation at any time if you don't agree with how your validator is voting.

2. Quadratic Voting for Fairness

To prevent a few large validators from having all the power, we're using quadratic voting. This means a validator's voting power doesn't increase in a straight line with its token stake.

• For example, having 10 million tokens staked gives a validator more voting power than having 1 million, but not 10 times as much.
• This makes it very expensive for anyone to buy up enough tokens to dominate the voting process, upholding our anti-plutocracy principle.

Example of Quadratic Voting in Action:

3. Community Caucuses for Representation

To ensure all community groups are represented, the Foundation will create Community Caucuses.

• Each caucus will have control over the voting power of a dedicated validator operated by PNF and will represent a specific stakeholder group (e.g., builders, node runners, etc.).
• These caucuses will be responsible for reviewing new ideas and proposals. If an idea is good, the caucus can help refine it and put its support behind it, increasing its chances of being approved.