Blockchain DeFi News

Solana-based Jet Protocol Turns to DAO Governance Model to Broaden Decentralized Community

Solana-based Jet Protocol Turns to DAO Governance Model to Broaden Decentralized Community
JetGovern offers a new way for borrow and lend participants to confidently participate in the best of DeFi

Jet Protocol is an open source, non-custodial liquidity protocol on the Solana Blockchain pushing the envelope on decentralized finance (DeFi) and debt capital markets efficiency. Through its lending products built for the emerging DeFi ecosystem, Jet has taken the first step in building a truly decentralized and censorship-resistant protocol providing the infrastructure for both individuals and institutions to access on-chain financial debt instruments.

“At Jet, a well-composed and strategically maintained system of governance is necessary in order to make decisions on everything – from run-of-the-mill functioning of the protocol, adjustment to policies of the JET token, adding new collateral types, dealing with a crisis, or deciding the direction of development and governance itself”

Jet’s design takes advantage of Solana’s unmatched speed and dramatically low fees, allowing for users to borrow against over-collateralized debt positions whilst honing the value of flexible, capital-efficient margins.

In efforts to provide an on-chain governance system representative of not only the Jet user base, but also the broader DeFi community, Jet has released JetGovern — a new mechanism to govern the platform in an effective and decentralized manner. JetGovern is the first step in Jet’s overarching strategy to introduce decentralized autonomous organization (DAO) governance to its growing user base.

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“At Jet, a well-composed and strategically maintained system of governance is necessary in order to make decisions on everything – from run-of-the-mill functioning of the protocol, adjustment to policies of the JET token, adding new collateral types, dealing with a crisis, or deciding the direction of development and governance itself,” said Jet CEO Wil Barnes. “Leveraging experience with governance frameworks from first-mover protocols like MakerDAO, we are constructing a truly battle-tested governance ecosystem with all the checks and balances in place to sustain growth and development.”

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JetGovern incorporates both on-chain and off-chain governance structures to ensure a trustless, secure and effective consensus building process. On-chain governance employs voting mechanisms on the blockchain through the JET token which is used to represent the user’s stake and confer voting rights, while off-chain governance takes place on the Jet Protocol forum where anyone can create or vote on a proposal.

The implementation of JetGovern, and subsequently the transition to a DAO structure, further emulates Jet’s commitment to ensuring truly decentralized governance of the protocol. Through the usage of the JET governance token, users will be able to lead the platform without going through any centralized or third party authority, putting full control in the hands of the protocol’s users, and the Jet community.

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