The XRP Ledger (XRPL) is poised for a transformative shift in its governance structure with the confirmation of a Decentralized Autonomous Organization (DAO). This groundbreaking change aims to decentralize decision-making processes and significantly boost community involvement, representing a crucial evolution in the ecosystem’s governance framework.
The Official Confirmation of XRP Ledger DAO
A prominent figure in the community, Crypto Eri (@sentosumosaba), recently highlighted this development by sharing a video snippet of David Bchiri, CEO of XRPL Commons, during his interview with Web3 Deep Dive. In her commentary on social media platform X, Eri elaborated on the timeline of these governance changes. She noted, “XRP Ledger Governance is undergoing a transformation. Our initial exposure began with XRPL Labs, XRPL Commons, Ripple, and the Australian not-for-profit Wave of Innovation in a XRPL Labs post dated September 6. This was followed by a DAO mention on September 19 in the XRPL Foundation GitHub Blog. Now, a DAO confirmation and announcement are forthcoming.”
The Genesis of Governance Overhaul
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The roots of this governance overhaul trace back to September 6, when XRPL Labs announced a collaborative effort with XRPL Commons, Ripple, and the Australian not-for-profit Wave of Innovation. XRPL Labs emphasized that these discussions marked the beginning of a new chapter, with much more to follow in the coming months as they delve deeper into this journey.
Advancements and Future Plans
Further advancements were communicated on September 19 by the XRPL Foundation through their GitHub blog. The foundation revealed plans to establish an initial board comprising key members from XRPL Labs, XRPL Commons, Ripple, and community representatives, potentially facilitated through the new DAO structure. This marks a significant step towards a more inclusive governance model.
Insights from David Bchiri
In his interview with “Web3 Deep Dive,” David Bchiri delved into the relationship between Ripple and XRPL Commons, providing new insights into the potential DAO formation. He clarified that while Ripple initiated the XRP Ledger protocol twelve years ago and continues to support XRPL Commons, the latter operates as an independent nonprofit.
Bchiri explained, “We’re supported by Ripple. We work closely with the RippleX team. While we partner with them, we maintain our independence. Our board is fully independent, with no Ripple members. Ripple is focusing increasingly on their products while continuing to support the XRPL.”
Structural Aspects of the New DAO
In his detailed explanation, Bchiri provided a first in-depth look at the structural aspects of the impending DAO. He outlined that the new DAO will feature a fully independent board of directors, initially composed of XRPL Commons, XRPL Labs, and the DAO itself, with plans to incorporate more community members and entities over time.
The new governance model will include specialized committees responsible for various aspects of the XRPL ecosystem. Bchiri noted, “Each committee will operate independently, with a committee for core development, another for UNL publishing, and one for compliance regulation.”
Empowering Community Contributions
Bchiri emphasized the importance of recognizing and formalizing the contributions of community members, stating, “We’re creating a framework for recognizing those already contributing significantly, aiming for a well-structured nonprofit that can scale with collective efforts.”
He concluded by highlighting the transparency and community engagement inherent in the process: “This is a process we want to share with everyone. We’ve had to establish the core process of incorporation, selecting initial members, and onboarding new ones. The vision for this new entity is to be fully community-operated, with our initial push facilitating its momentum.”
Current Market Position
At the time of writing, XRP is trading at $0.5075, reflecting the dynamic nature of the cryptocurrency market. This shift in governance is expected to have long-term implications on the XRP Ledger’s position and influence within the crypto sphere.
