A proper blockchain governance system needs transparency and operational efficiency which enables continual and rapid innovation. In order to achieve the main goal of operating a decentralized public blockchain with the capacity to scale and at the same time complying with regulators, governments and to meet the needs of large enterprises,
VeChain aims to improve its governance model with the ability for continuous iterations alongside rapid progression in ecosystem development.
It is important that such a governance model is both efficient and cost-effective, while resulting in consensus and decisions that balance the views of all stakeholders of the blockchain. The Steering Committee (“SC”) of the VeChain Foundation, elected by all stakeholders in the ecosystem every two years, facilitates the efficiency of decision making and ensures the fairness and effectiveness of the execution on fundamental matters that require all stakeholders’ decision, as well as executing all other decisions that are vested to the SC as according to the Governance Charter.
At the early stage of the VeChain ecosystem, it is important that Steering Committee Members (“Members”) share the vision of creating a distributed business ecosystem on top of the VeChainThor blockchain and at the same time represent various stakeholders in the ecosystem. Hence, with the first term of the VeChain Foundation Steering Committee coming to an end on June 30th 2020, we introduce the following process of the 2nd term Steering Committee election.
Criteria And Eligibility Of SC Member Candidates
As determined by the current Steering Committee, the size of the 2nd term Steering Committee will remain as seven. According to the VeChain Foundation Governance Charter, SC member candidates are nominated based on three categories:
Existing SC members who decide to run for the next term
Candidates (up to three) nominated directly by the Foundation nomination committee
Candidates who publicly announced their intentions to run for the 2nd term Steering Committee member
The total number of candidates from the above three sources can not exceed 14 in the final all-stakeholders voting.
For candidates in all three categories above, before expressing the intention to run as a candidate to be a Steering Committee member, an applicant must meet the following prerequisites:
Announce the intention to run for the SC member by publicly disclosing his/her real name
Minimum age of 21 years old
Is not a “disqualified person” according to 4.2.1 Size, Composition and Criteria of the Governance Charter
According to the VeChain Foundation Governance Charter, SC member candidates are required to meet the following qualitative criteria:
Integrity, objectivity, sound judgment and leadership
Relevant expertise and experience required to offer advice and guidance to the development strategy of the Foundation
The ability to make independent analytical inquiries, collaborate effectively and contribute productively to the Steering Committee’s discussions and deliberations
A commitment to enhancing the long-term value of the VeChainThor Blockchain for stakeholders
An understanding of the Foundation and blockchain operation, strategy and challenges
The willingness and ability to devote adequate time and effort to Steering Committee responsibilities and to serve on Functional Committees at the request of the Steering Committee
In addition, as part of SC members’ job role, each member is required to oversee a functional committee which fits his/her field of expertise. SC members are expected to provide strategic guidance on the operation and continuous development of the VeChain Foundation organization, blockchain technology and ecosystem. Members usually represent the VeChain Foundation in various occasions such as professional associations, academic organizations, industrial forum, technical conferences and so on, in which they should be capable of elaborating VeChain’s strategy and vision and bringing the resources to help the growth of the ecosystem.
What Is The Role Of Steering Committee Members?
The Steering Committee represents the VeChainThor blockchain stakeholders’ interests in the long-term development of the technical infrastructure, business expansion, and VET value enhancement. The Steering Committee is responsible for establishing the general oversight and framework, including the design of the operating rules of the blockchain that are intended to achieve these goals. The proposed oversight and framework for these goals would then be implemented by the functional committee teams. Steering Committee members except for members from the VeChain team will receive a fixed amount of VTHO tokens as compensation, and the Foundation will cover travel expenses and accommodation for members to attend board meetings, except for members that are located directly at the city in which the meeting would be held.