- Binance and Eosfinex, Bitfinex’s decentralized exchange, are some of the big names in crypto to join Equilibrium’s EOSDT stable coin governance committee.
According to official reports, the two companies joined the council alongside independent block producers, EOS Nation and EOS Cannon, to provide oversight over approval of contracts and amendments made on smart contracts on the EOSDT stablecoin blockchain.
Equilibrium is an EOS based open finance platform that offers similar capabilities to Maker platform with EOSDT similar to the DAI stablecoin. With the new governance team in place, Alex Melikhov, CEO of Equilibrium, said this will allow the network to fully utilize the features on EOS in his statement,
“One of the main advantages of EOS lies in updatable smart contract code. In other words you can migrate to new versions of your application seamlessly without hard stop of the whole system.”
— Equilibrium (@EOSDT) May 22, 2020
Binance involvement in the governance of the Equilibrium chain will see the exchange oversee every smart contract on the platform, granting access to upgrades or rejecting them. However, the governance council regulations require at least two parties to give their consent before the smart contract is implemented.
“You can also consider it as establishing a four-eyed principle for Equilibrium’s EOSDT.”
The decision to add the new members was voted by the existing council members not only Equilibrium, Alex said. This is to ensure the best and most reliable participants in governance are chosen for the slots. Such decisions are uncommon on Ethereum DeFi platforms whereby the founders hold the admin keys of the protocol giving them absolute power over the system.
Equilibriums governance council, while not fully trustless, offers the blockchain “decentralization by creating a proof-of-authority framework which consists of trusted counterparts that are independent according to their background.” Alex further said,
“Instead of a single owner who can potentially do whatever they want there is a group of reputable and known ecosystem participants who bid their reputation on the integrity/relevance of these updates.”
While the verdict remains unknown on why Binance joined the governance council, the possibility of BNB being added as a backing asset to the EOSDT stablecoin has improved. According to one spokesperson from the largest crypto exchange, top management is looking forward to BNB getting added as collateral on the Equilibrium DeFi platform.