The challenge with governance on blockchain
Governance is a difficult topic for any blockchain. This is especially true for security tokens, where the chain is not only the source of truth for potentially billions of dollars, but must also allow investors, issuers, and capital market participants to fulfill their regulatory obligations. Because of its decentralised nature, when there is a disagreement, a blockchain split or fork into two separate chains, exposing major legal and tax challenges for security tokens.
The Polymesh solution
Polymesh addresses the challenges general-purpose blockchains face with governance by building it into the core of the blockchain. Normally, blockchains are susceptible to forks during upgrades. Polymesh is built on Substrate Framework, which provides Forkless Runtime Upgrades. This allows for seamless upgrades on the chain to avoid the risk of hard forks. Additionally, Polymesh relies on a council of key stakeholders to review Polymesh ImprovementProposals submitted by committees or token holders, find consensus, and chart a path forward for its future development. This provides a means of steering the chain past potential issues or disagreements.