EigenLayer governance system EigenGov plans to form a council network, and EIGEN holders have the right to veto the councils decisions

CoinRank News: According to official news, the Eigen Foundation issued an article introducing the first part of EigenLayers governance system EigenGov. The role of EigenGov is to maintain the coordination layer of the EigenLayer ecosystem, which is composed of EIGEN holders, AVS developers, operators and pledgers, who are key participants in the prosperity, security and reliability of the EigenLayer protocol. EigenGov brings together ecological participants to support a common vision of open innovation through a novel system that is both effective and decentralized. The core of EigenGov V1 is its council. The power of EigenGov will be held by a network of councils composed of trusted high-context field experts, authorized by token holders to make decisions on behalf of the community and take responsibility through a system of checks and balances. The council will have power in specific areas and can make decisions and take actions on the EigenLayer protocol and EigenGov. These powers include decision-making power and the power to upgrade core protocol contracts (Protocol Council), power to manage reward parameters (Incentive Council), power to manage the community grant budget (Grants Council), and power to set limits and evaluations on governance and governance power (Eigen Council). Each council will have a charter to govern the scope of its decision-making power and authority, and the number, scope of activities, and membership of these initial councils will continue to grow over time. EIGEN holders will have the power to veto council decisions. In the near future, Eigen holders will also be able to (i) directly endorse EigenLayer contributors for certain subject matter knowledge or skills that may qualify these contributors to become council members, and/or (ii) assign power to curators who will make such endorsements on behalf of the Eigen holders who have assigned power to them. This endorsement model is novel and should be distinguished from delegation. Decision-makers with community trust are promoted to council members and actively vote on all proposals. Token holders can veto proposals as needed to check for seriously inconsistent decisions. Additionally, token holders will be able to voice their opinions on proposals before the Council votes, thereby strengthening collective opinion without requiring detailed expertise on every issue. To address the challenges of effective and decentralized governance, the Eigen Foundation is implementing an incubation philosophy to create, appoint, and manage the Council. The decentralized structures that will initially be incubated within the Eigen Foundation will serve as independent Councils. Incubation ensures that the Council is functioning effectively in the short term. It also provides time to research, develop, test, and iterate new Council and governance designs. These designs will launch powerful decentralized solutions to the following key issues: Council Incentives: Reward Council members for consistent, high-quality, and long-term value creation. Council Coordination: Reduce the principal-agent problem by creating new systems to support decentralized coordination of decision makers and protocol needs. Council Accountability: Hold decision makers accountable to token holders through checks and balances, transparency, and reporting.