Everscale DAO approves the economic reform of the project

Everscale DAO voted for reform to improve governance and mitigate crypto-winter risks.

The decentralized autonomous organization (DAO) that runs the Everscale ecosystem voted for the reform, which is intended to improve the quality of the project’s governance and mitigate the impact of crypto-winter. The proposed initiative comprises several directions.

Payments to key participants and partners

Total commitments under the DAO’s decisions amount to about 50 million EVER, according to the project’s accompanying note.

Putting this amount into free circulation as decisions are implemented would exert additional pressure on the price of EVER, the native token. However, freezing the funds until the end of the crypto market crisis would be improper, according to the authors of the initiative.

To mitigate consequences they proposed creating a LEVER token, backed 1:1 by EVER. The asset would carry a two-year lock-up period, during which the tokens would remain locked in staking. At the end of the lock-up period, the funds could be retrieved along with two years’ worth of accrued yield.

LEVER is planned to be distributed among Everscale DAO participants. The tokens will also be allocated to members of the Founders’ Council and partners.

Introduction of KPIs for DeFi Alliance and EverX

Under vesting terms and the decisions taken by the Everscale Founders’ Council prior to the DAO launch, key project participants, the DeFi Alliance and EverX, are to receive 170 million EVER each. This is a substantial portion of the current circulating supply (1.24 billion coins).

To avoid price volatility from a lump-sum distribution, the DeFi Alliance and EverX have decided to set a joint KPI: EVER reaching the top 100 by market capitalization in the short term, and the top 10 in the long term. At the time of writing, the asset sits at 245th on CoinMarketCap and 238th on Coingecko.

The coins earmarked for vesting will be unlocked for the DeFi Alliance and Everscale gradually, as the target is achieved.

Decentralisation of the protocol development process

A few months ago, EverX, the lead developer of Everscale’s architecture, pledged to open-source its code and invite external developers to contribute to the protocol core.

The first step toward the new model was taken in June 2022, when a Technical Architecture Committee was created, comprising leading community experts. The group has already held three meetings.

In the future, development priorities for the Everscale protocol will be determined in a decentralised manner, the reform proposal states. In the absence of internal consensus, proposals will be put to a vote by the DAO.

Starting in July 2022, core development funding will move to the Everscale Foundation, and the code for all solutions funded by these resources will be opened.

Grants and Partnerships

Most of the grants issued and partnerships entered into did not deliver value to Everscale, the reform authors noted. While this mechanism will remain the primary means of developing the ecosystem, the approach to its execution will change.

According to the reform project, partners will now receive rewards from Everscale only after they can prove their contribution to the project’s development. Each decision to award a partner is taken by the DAO. Grants from the Everscale treasury will be issued only in fiat currency to avoid creating a threat to EVER’s price stability.

Each of the directions outlined in the reform project will be detailed and put to a separate vote. The aim of this initiative, its authors emphasised, is to outline a set of measures that should be undertaken.

Earlier, the Everscale DAO voted to discontinue payments to 30 partners and founders due to their insufficient activity. The decentralised organisation, in which all EVER holders can participate, was launched in March 2022.

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