The Kava network has, since launch, continuously worked towards establishing itself as a mature, fully decentralized layer-one network. This framework is adopted to reflect that prior and ongoing intent, formally adopt specific benchmarks and policy goals for the Kava ecosystem in furtherance of that intent, and authorize additional action by the Kava community and ecosystem participants in furtherance of this goal and the related purposes described herein..
$KAVA Framework for a Fully Mature and Decentralized Kava Network
Kava Chain
Kava Chain
The Kava network has, since launch, continuously worked towards establishing itself as a mature, fully decentralized layer-one network. This framework is adopted to reflect that prior and ongoing intent, formally adopt specific benchmarks and policy goals for the Kava ecosystem in furtherance of that intent, and authorize additional action by the Kava community and ecosystem participants in furtherance of this goal and the related purposes described herein.
Background
The role and market dynamics around layer-one blockchains and their core ecosystems have evolved dramatically since Kava’s public launch. As exemplified in the recent U.S. stablecoin legislation and pending crypto market legislation, we are seeing the largest, most well-regulated markets move to recognize and integrate these technologies. This is not being done thoughtlessly; places like the U.S. have huge, important commercial and financial markets to protect, and both recent and pending efforts there and in other countries suggest that there are going to be stringent expectations on decentralization, operation, and governance of blockchain protocols wishing to bring in users and developers from those markets. Long-term, the most successful blockchains are likely to be those which comport with the legal and practical requirements of these deeper markets and more established legal frameworks. This isn’t just because of the practical benefits of a larger pool of users and builders; as discussed further below, the Kava community believes that many of the proposed legal benchmarks for decentralization closely align with the ethos and current commercial requirements of the network.
Kava itself has evolved from a purely DeFi platform to a decentralized infrastructure coordination layer, reflecting the broader trend of greater interaction between the on-chain and ‘real world’ economies. As the network’s role as an infrastructural node for not just DeFi, but on-chain AI and real-world asset applications grows, it’s essential that Kava be accessible to builders from the AI, TradFi, and other conventionally ‘off-chain’ elements of the economy. This will not be possible without viability as a platform in the largest jurisdictions, including the U.S. and E.U. Thus, Kava must continue its path to a fully “Mature Network” (as defined below) to maximize usability and accessibility in these jurisdictions.
Furthermore, builders and users alike must have confidence that the Kava network is credibly neutral and decentralized in order to view it as a viable alternative to traditional platforms. This must be reflected not just in practical authorities and operations of the network, but in the public perception amongst potential builders and users on the network. The Kava community believes that, by adopting this Policy and taking all steps necessary to fully comport with the Mature Blockchain benchmarks described below, it will bolster the credibility of its decentralization for builders choosing a protocol on which to develop, and give comfort to users seeking an alternative to private rails and centralized infrastructure.
Finally, the health and security of the Kava network is ultimately tied to the liquidity and accessibility of the Kava token. The ability for node operators and other ecosystem participants to acquire, stake, or dispose of their tokens in a regular manner is key to the security model of the network. It is also likely that major, traditional commercial and financial institutions in important markets will only be willing to build, deploy, or operate on blockchains where they can acquire the assets and authorities to operate their own nodes, or on nodes subject to local oversight.
Benchmarks for a Mature Network
The Kava community believes that the following criteria are essential to establishing Kava’s maturity as a blockchain network, and fostering the long-term growth and use of the network:
1. Finalized development and functionality.
A Mature Network should have fully functional, finalized code and operational deployment, and shouldn’t be reliant on any one team or party for ongoing maintenance.
2. Programmatic operation.
The on-chain transactional infrastructure and tooling of a Mature Network should be fully programmatic and self-executing to the extent possible.
3. Distributed ownership.
The ownership of a Mature Network’s native asset and governance should be highly distributed, across both individual parties and jurisdictions, and should ideally be predominantly held by active users or contributors to the network. This means that the supply of the native token of a Mature Network should not be overly concentrated under the ownership or control of any one party (or any one jurisdiction), whether directly or on behalf of third parties. Ownership stakes in the network — including the liquidity therefore — should be sufficiently distributed to resist co-option by a hostile jurisdiction or individual participant.
4. Distributed governance and infrastructure.
In line with distributed ownership, the governance of a Mature Network should be sufficiently distributed to resist attack. This not only means ensuring that the distributed of voting tokens is sufficiently broad, but further minimizing and amortizing governance authority to minimize the capacity for a hostile actor to subvert or coopt the network through a single attack vector, such as node or token ownership aggregation.
5. Openness & Impartiality.
A Mature Network must be open and impartial. Core code and smart contracts for the operation of the network be published under a permissive, open-source license. Similarly, no individual or body of individuals should stand in a privileged positions with respect to the network, whether by virtue of technical authority and access, or legal rights with respect to the network and its operation. Trademarks and other intellectual property relating to the network should be held solely in trust on behalf of the community to prevent malicious actors from defrauding the public as to the true network.
6. Network value.
A Mature Network’s native token derives its value predominantly from its intended use on the underlying network. This means that the Kava community should promote and prioritize the acquisition and use of Kava to conduct ecosystem-oriented activities such as staking Kava to ensure network security, operating nodes on the network, and using Kava to store, collateralize, and transmit value. This will further reinforce other key Mature Network benchmarks by promoting the further distribution and development of the network’s global ecosystem of participants in its security, operation, and liquidity...
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