Dive into the inner workings of Telos' Network governance documentation. Governance is a huge strength of the Telos network. Powered by the Telos Decide engine, Telos' governance structure puts network operations in the hands of token holders.
For a full list of Telos on-chain governance documentation, please visit telos.net/governance.
Telos has an advanced on-chain governance model. $TLOS holders can participate in any governance-related matter on-chain. Besides choosing the block producers, $TLOS holders can draft and vote on proposals. The most common proposals include using Telos treasury to fund initiatives around the Telos ecosystem.
The underlying Telos blockchain rules are defined in the system contracts, a smart contract suite defining the core of the Telos network. Any change to the system contracts must go through code review, block producer acceptance, and governance acceptance (vetoable). Telos Core Developers working on the system contract are chain-funded and can be paid or dismissed based on community voting. Additionally, Telos token holders are far less concentrated than many similar chains.
Telos block producer voting is "inverse weighted," meaning that if you only vote for one or two block producers, your votes have less weight than if you vote for 30. This encourages the majority of Telos members to become more educated about block producer candidates and discourages those who seek to vote only for themselves and their affiliates.
Telos maintains minimum standards for block producers to be eligible candidates. These standards are based on security, server capacity, information disclosure, and participation in the public and private testnet. Block producers are required to run for two weeks without error on the testnet before going to the mainnet.
These standards will be enforced by smart contract from the time of mainnet activation and any block producer candidate that is not in compliant compliance will not be capable of serving, regardless of votes. All other block producer candidates will automatically rise up the block producer ranks to fill in until the minimum requirements are met.