The Crescendo upgrade with EVM on Flow and Cadence 1.0 is here! Learn more
December 19, 2022
Flow Ecosystem Priorities: Protocol Governance
Flow Ecosystem Priorities: Protocol Governance

For Flow to continue toward progressive decentralization, it will require not only the distributed infrastructure but also the capacity to be maintained and governed over time by more node operators. The Protocol Governance working group operates at the intersection of all the other groups and is responsible for the development and governance of the network. This group is responsible for technical governance, which includes updating system parameters, rolling out larger-scale changes in the protocol, and fixing bugs.

Increased participation in the multi-sig process

With weekly improvements to the multi-sig signing of Flow transactions, processes, and automated network operations, it has become possible to expand the number of signers for multi-sig operations on Flow accounts. The Flow multi-sig signers should be from across the ecosystem and have an interest in the long-term development and health of Flow. Currently, two main accounts are used to manage parts of the protocol:

  1. Service account: For items related to protocol parameters
  2. Staking account: Used to hold resources related to staked nodes within the network

Automated network operations: performance-based rewards & slashing

The staking reward system is ready to have automation turned on. Doing this will reduce the number of weekly transactions from the service account and improve the predictability of payment timing for stakers and delegators. With automation enabled, the service account can focus on less frequent transactions such as changing fees and assisting in sporks.

As the network matures, operations such as slashing validators for policy violations should be increasingly automated. Work can begin on slashing systems as well as validator payouts based on work done instead of simple staking. These ideas have yet to be formalized or implemented. We look forward to community involvement in the design of these features.

Governance Proposal process

Flow Governance needs to expand its use of FLIPS to gather feedback and communicate governance priorities. Governance FLIPs will provide a standard mechanism for community members to propose changes actions taken by the Flow Service Account signers, execute certain actions such as adding and removing node operators, and proposing changes to Flow’s fee structures.

The core contributors include Dapper Labs, Blocto,, Outblaze, Animoca. Anyone is welcome to contribute to governing the protocol and community efforts. For more information please refer to the FLIPs repository and the Flow Governance Forum. And in the near future will host a public R&D meeting to discuss updates to work streams, cross-functional brainstorming, and receive feedback from one another.