The price of Solana (CRYPTO: $SOL) is up 5% on July 2 after a formal onchain governance system was introduced for the cryptocurrency.
The system, called “Solana Governance Proposals,” enables validators with at least 100,000 SOL ($7.70 million U.S.) staked, or locked on the network, to propose changes to the network.
Analysts say the new system is akin to a publicly traded company giving voting rights to its shareholders after years of letting only the board of directors and executives make decisions.
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Going forward, qualifying owners of SOL will be presented with a plain-language question about whether the network should pursue a given direction or strategy.
Each question will be settled by a vote weighted by how much SOL the person has staked, with the tally recorded onchain.
Decisions regarding the Solana network and blockchain will be resolved by validators. The new system is getting a vote of confidence from investors who are bidding up the SOL token.
To pass, future proposals and questions will require at least two-thirds of the votes cast for or against it, with abstentions left out of the tally.
SOL has seen its price decline 35% this year to trade at $80.97 U.S.
