ZOS adopted a whole set of open governance mechanism. Each user has the right to vote on a decision on the blockchain, and each ZOS token held by the user equals to one vote. The evolvable governance structure consisting of “Voting ”, “Voting by Proxy”, “Block Producer”, “Committee”, “Sub-committee” and “Budget Committee” makes it possible for community autonomy.
- Vote by Proxy
In ZOS ecology, ZOS token holders own the right to vote on all decisions on blockchain. To avoid passive voting, users can give their voting power to their trusted proxy to execute the right.
- Block Producer Election
Block producers package the generated blocks, provide servers required by the platform and deploy node programs, so they plays a vital role for operation of the platform. They are voted on by ZOS holders in order.
- Committee Voting and Election
ZOS community is managed by a committee. Committee members own the right to adjust the basic parameters of the system (like service fee, mortgage parameter, mandatory liquidation, etc.), through which they can manage the operation of the whole ecology. Committee member can initiate a proposal to adjust a parameter and submit it to the committee. The total voting-weight of committee members is 198%, and the proposal is passed when the approval voting-weights reaches 100%. Blockchain system will implement the proposal automatically through smart contracts. We have 11 committee members in total. They are voted on by ZOS holders in order.
- Sub-committee voting and authorization
ZOS not only adopts a committee system, but also innovates a sub-committee system where the members can manage the business parameters on blockchain without restrictions from the committee. For example, in the lending scenario, under each kind of fiat currencies there will be a sub-committee responsible for the lowest interest rate, risk margin, and parameters of loan/repayment/rate/overdue payment. Sub-committee members appointed by the committee can initiate and audit the parameter modification proposal, which will take effect after 2/3 members vote it through.
- Budget committee voting and election
ZOS has designed a budget committee to audit budget proposals and manage the budget pool expenses. Members can vote to decide whether to approve a proposal or not, and they also can suspend it during the period of releasing budget. If more than half of the members vote it through, a proposal will take effect. Each ZOS holder can apply to be the candidate of budget committee. There are 11 members of budget committee in total, and they will be voted on from candidates by all users in order.