How does the ICON Governance Model Work?

We are all used to having to rely on centralized systems when resolving different problems in our daily lives. We share links with our friends via centralized social media and we make payments for goods and services in a shop via centralized banks.

However, all these systems are far from perfect. Their excessively complicated structure of different intermediaries results in high fees and lengthy deals. Also, when using centralized payment systems, we have to depend on the reliability and security of the trusted third-parties.

Here at the ICON Network, we aim to provide real-world communities such as financial institutions, insurance companies, hospitals and universities with a new governance model. This model would let them get free from traditional economic system and exchange values in a frictionless way.

Principles Underlying ICON Governance

In order to reach its goals, the ICON uses the following principles:

1. Decentralization

ICON represents a decentralized network with no single entity to control it. No participant can terminate, manipulate or attack the system.

2. Interchain

The ICON Network provides various communities with the possibility to share information with each other. Regardless of what characteristics a selected community has, it can connect with any other community or individual through its representative.

3. Contribution

The participants of the ICON Network contribute to the community and are rewarded for their efforts.

Representatives of ICON Network and their Duties

The representatives of the ICON Network, those who make any contributions, can be divided into two major groups:

C-Reps (Community Representatives)

P-Reps (Public Representatives)

Regardless of their position, they all are responsible for producing new blocks and keeping the network stable. Their duties are to manage the network, to participate in its governance and to protect it from any risk including attacks from the outside and the network failures.

Decision-Making Process

All participants of the ICON Network can come up with their own opinions and suggestions. To do that, they have to publish a forum post which will be discussed by the community.

If you want to make any real changes to the network, you can do this by submitting a Network Proposal. After that, the community votes for or against it. And if it reaches the majority of votes, it is adopted soon afterward.

The participants are free to follow or to stand against the community. But if they confront the majority, they should be ready to accept the punishment in the form of disciplinary action for breaking the rules.