As a seasoned analyst with over two decades of experience in the tech and finance industry, I find Consensys’ move towards decentralizing Linea through the establishment of the Linea Association to be an ambitious yet strategic step. Given my extensive background in understanding the nuances of governance models and their impact on technology adoption, I am particularly intrigued by the focus on token holder governance and the potential for community-driven decision making.
ConsenSys is working towards making Linea more decentralized by setting up an official Association for its protocol. At the Devcon conference held in Bangkok, Thailand on November 13th, they announced the launch of this Linea Association for their Layer 2 (L2) zero-knowledge Ethereum Virtual Machine (zkEVM) rollup developed by ConsenSys.
Linea Association Aims for True Decentralization
The Linea Association, based in Switzerland, is a non-governmental organization committed to fostering the progress and management of L2 (Linear technology’s second layer). Its primary goals are:
In simpler terms, The Linea Association will manage both the creation and administration of the open-source technology and ecosystem related to this protocol’s development. Furthermore, they are also working on expanding the Linea mainnet, a scalable Layer 2 solution based on zkEVM that aims to maintain Ethereum’s security and decentralization while improving its capacity.
Joseph Lubin, founder of ConsenSys, considered this action as a significant stride towards genuine network decentralization. Over time, this could potentially lessen the dominance of any ruling body. The Linea Association’s blueprint includes token holder governance as a key aspect, which is expected to introduce the Linea token by the first quarter of the coming year.
The token holders will have access to decision-making related to specific actions taken by the Association. Declan Fox, the head of product development at Linea, mentioned that the system is currently working out the finer details of a future decentralized governance model, which will be driven by the community and rely on tokens.
It is worth noting that decentralization has become crucial to the crypto sector. Like Consensys, Cardano has made a move to achieve this feat with its recent Chang Hard Fork upgrade. Similarly, Ethereum co-founder Vitalik Buterin also set strict standards for the decentralization of the L2 scaling solution.
Consensys Supports a Pro-crypto Government
ConsenSys is taking this step with Linea, given the positive trend in U.S. cryptocurrency development. A week past, Donald Trump emerged victorious in the election against Kamala Harris, his Democratic National Convention opponent. Throughout his campaign, Trump positioned himself as a champion for cryptocurrencies, earning him the nickname “The Crypto President”.
Following the election victory, a resurgence occurred across the entire cryptocurrency market as various assets reached new peak values (All-Time Highs). The crypto community is enthusiastic about potential changes to the tough regulatory environment they have experienced. ConsenSys is just one of numerous companies impacted by the Securities and Exchange Commission’s strict regulations towards crypto businesses.
Due to this, it repeatedly advocates for the next U.S. president to be open to forward-thinking blockchain policies. In an open letter to the new president, Consensys outlines three crucial aspects that should be considered in their approach towards the blockchain and Web3 sector.
In order for the upcoming administration and its regulatory bodies to offer clear and definitive routes for valid engagement within the web3 platform, they should prioritize this. This will enable entrepreneurs to operate with assurance, make significant contributions to our economy, and facilitate the arrival of the next phase in internet technology – a goal which our company strongly supports.
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2024-11-13 17:12