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In simple terms, $RAI stablecoin has two key features:
1. Non-dollar peg.
2. Minimal governance.
The core mechanism is to mitigate the volatility of $ETH. Why is Vitalik Buterin interested in it? What is the ""secretly great"" minimal governance?
The core mechanism of Reflexer is to stabilize the price by mitigating the volatility of ETH. Therefore, it is not tied to the US dollar or any national currency. You can also understand it as a stablecoin issued by the nation of Ethereum. So, it's another form of ETH, which is likely one of the reasons Vitalik Buterin is interested in it.
As for how it is implemented at the protocol level, that's a topic for another article.
$RAI's other feature is minimal governance, which differs from most protocols in the market. Minimal governance is an idealistic endpoint for protocol governance.
1. Most protocols on the market seek a balance between decentralization, efficiency, and effectiveness in governance.
2. Minimal governance aims to minimize protocol interference by DAOs, following the principle of avoiding governance whenever possible and solving problems at the protocol level with code.
Of course, governance is necessary in the early stages of a project, but the ultimate goal of all governance is to make the protocol more automated and reduce the need for human intervention. This is why there is the concept of an ""ungovernance token."" Therefore, if the protocol's mission remains unchanged and follows the script, a successfully minimal governance protocol will eventually detach from the ungovernance token, and its value will lose its attachment.
Is there a sense of something ""secretly great"" about this? |
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Post time 1-11-2023 12:10:44
