Fushuma On-chain Democracy

Illustration of a traditional assembly discussing governance, symbolizing on-chain democracy and decentralized blockchain governance.
  • Building a Transparent Tomorrow: On-Chain Governance Inspired by Ancient Democratic Values.
  • Building a Transparent Tomorrow on the Foundations of the Past.
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A (Not So)Modern Theory Of Democracy

In the quest to establish a genuine democratic system, the concept of on-chain democracy emerges as a transformative solution. Throughout history, democracy has been considered the ‘holy grail’ of societal governance, and it has often elusive in practice. On-chain governance, which combines democratic principles with blockchain technology, therefore promises to shift power dynamics by decentralizing governance and improving transparency.

Origins and Definition of Democracy

First, consider the origin of the word ‘Democracy.’ In ancient Greek, ‘Dēmokratía‘ breaks down into “Dêmos,” meaning “people,” and “Kratos,” which translates as “power.” Hence, democracy literally signifies “power to the people.”

Wikipedia describes democracy as a system of government where the people or the population hold state power. However, in modern democratic models, a critical distinction arises: people elect representatives rather than voting directly on matters that affect their lives. Thus, they give a few people the power to make decisions for them, effectively giving them a blank check for a set period.

Challenges in Modern Democracy

Nevertheless, history reveals a striking constant: power, when concentrated, often tends to centralize further. Consequently, in many so-called ‘democratic’ systems, the voice and choice of individuals get overshadowed, leading to hyper-centralized governance where the collective voice becomes weaker. This is where the fusion of true democratic values and new blockchain technology effectively solves these challenges.

Why Blockchain Offers a Solution for On-Chain Democracy

Blockchain, inherently transparent and decentralized, provides a powerful foundation for rethinking democratic governance through on-chain democracy. Although blockchain technology has evolved over the past 13 years, the full realization of on-chain democracy has yet to be reached. As a result, a few entities are controling many of today’s leading blockchains, highlighting the need for a true blockchain democracy that distributes power fairly.

Fushuma aspires to change that narrative. By proposing a vision of a decentralized voting system and combining it with the Fushuma Treasury, we aim to create a true on-chain democracy where power belongs to the “Dêmos.”

“At each stage of human existence, the adult man is off on his quest of his holy grail, the way of life he seeks by which to live.” Clare W.Graves

Why Decentralized Governance Matters in Blockchain Democracy?

I. Decentralized From Day 1

Fushuma’s coin distribution shows our commitment to decentralization.

II. Fushuma's Treasury

A unique network feature allowing for grants, avoiding traditional centralization, and promoting further decentralization.

Indeed, on-chain democracy relies on individuals’ active involvement in the decision-making process. Similarly, the Web 3.0 digital era should be characterized by users’ active and decentralized participation, thereby ensuring an equitable digital future for all.

Core Objectives of Fushuma On-Chain Democracy

With a vision to empower the community and give them full control over the network’s direction, Fushuma On-Chain Democracy’s core goals are:

  • Overseeing the implementation of upgrades.
  • Facilitating the adoption of new consensus.

  • Allocating funds from the Fushuma Treasury.

Fushuma’s vision is to create an environment where every network participant’s voice has an impact on the decision-making process. While we believe in complete decision-making rights, we also recognize the need for strong checks and balances. These measures ensure that no majority can unilaterally impact the network’s health or exploit the Fushuma Treasury unfairly.

Proposal Submissions: Enhancing On-Chain Democracy and Governance

Through the Fushuma Improvement Proposals (FIP), all community members are invited to actively participate in the network’s life, thereby creating a sense of shared ownership within the framework of on-chain democracy. Therefore, this approach improves blockchain democracy by ensuring clear and decentralized governance.

Notably, each proposal submission to Fushuma will require a nominal fee of $20. This fee balances accessibility for proposers and the need to maintain the integrity of the governance process.

Then, the collected fees will be transfered to the Fushuma Treasury, thereby helping the network’s growth and sustainability.

Fushuma On-Chain Governance Mechanism

  • Proposal Submission Process

    Community members are encouraged to submit well-reasoned proposals through a dedicated platform. Each proposal should clearly state its intention, the expected results, and the expected funding.

  • Dynamic Thresholds for On-Chain Proposal Consideration

    A dynamic upvote threshold ensures that only pertinent proposals advance. Specifically, a proposal threshold will be determined based on the proposal’s value. (Small feature grant requires less voting threshold than a larger project grant).

  • Incentiving Participation in Blockchain Democracy

    To further promote an environment of active governance, participants will be eligible for bonuses and rewards.

  • Resolving Rejections

    If a proposal does not get enough votes, the author can revise it. In these cases, authors must clearly address previously raised concerns and describe the changes they made in the re-submitted proposals.

  • Protection Against Malfeasance

    The community can collectively flag suspicious or harmful activities, reinforcing the principles of on-chain governance. Specifically, if more than 1/3 of the previous voting session’s active participants flag an issue, then a community-wide vote on the ostracism process will be triggered.

  • Ostracism Process and Sanctions

    • If a majority votes for ostracism, the flagged entity will face sanctions.

    • Furthermore, an appeal mechanism ensure fairness and allow for contestation of the decision.

Promoting Active Participation with Sortition

To further decentralize the voting power and include more community members, Ambassador rights will be awarded to active community members, enhancing the practical application of blockchain democracy. In particular, this mechanism is directly inspired by Athenian democracy, where citizens had an equal chance to hold public office, reducing the risks of corruption and elite domination in governance. Thus, the sortition process reinforces on-chain democracy's ideals.

Implementation and Review

This integrated rewards system will be initially introduced as a pilot program, with ongoing monitoring and evaluation to determine how effectively it enhances democratic participation.

Based on community feedback and collected data, adjustments will be made to ensure fairness and the network’s health.

Implementation Phases

• Phase 1: Initial control by Fushuma founders, VCs, and technology partners.

• Phase 2: Full treasury control transitions to the community, realizing our vision for a decentralized democratic ecosystem.




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