🪐Governance

All about SiBorg governance

Why governance & decentralization matters

Centralized platforms tend to abuse both users and third-parties once they dominate a market.

Many platforms follow this life cycle. Initially, they aim to entice users with favorable conditions such as low fees and an ad-free experience. Later, the platform extracts value without seeking input or contributions from its stakeholders.

Take YouTube as an example. The core team has the authority to alter the algorithm model, potentially impacting content creators' revenue without their consent. Similarly, YouTube can escalate the frequency of ads during a video without consulting the user. This life cycle can be observed in various applications like Uber or Airbnb, where they raise their fees.

Furthermore, certain decisions should not rest solely on one stakeholder, typically the team. For instance, the expulsion of a user from the app should be a determination made not only by the team, but also by the users.

Multistakeholder governance

SiBorg will use a governance model named multistakeholder governance. The idea behind this model is to get people with different point of view to make a decision so that every stakeholder is represented in the governance process. To exemplify this principle: in Germany, it's a requirement for boards of large companies to have worker representatives. This imparts greater legitimacy to board decisions and promotes consensus, especially on challenging matters. Making decisions with various stakeholders is more effective than relying solely on shareholders, whose interests may outweigh those of workers and other stakeholders.

How does it look like for SiBorg ?

Key stakeholders of SiBorg :

  • The core team that is responsible for building and operating the platform itself.

  • Users are individuals who utilize the services provided by the platform. They engage with the platform to access content and services tailored to their needs.

  • Content creators are podcasters who create content to the platform.

Giving a voice to stakeholders:

The core team may use a one-person, one-vote-based voting system. This requires a low level of trust, which is ensured by the fact that every member of the core team is known by other members.

Users along with investors will use SiBorg token to express their voice. This group is open and permissionless. Once the token is publicly available, anyone can buy it without necessarily using SiBorg app. However, some users will receive incentives in the form of $SIB according to their participation in the app.

Content creators will use a voting power based on their in app reputation and the revenues they generate in the application.

In this system, the token alone doesn't serve as the sole basis for governance legitimacy. It has been observed that relying solely on the token for governance proves ineffective, with typically fewer than 5% of holders participating in the voting process.

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