🏛️Governance Layer

The white paper delineates the requisite governance layers using the trias politica model while acknowledging the applicability of other models to this governance system. The model comprises three components:

• Legislative Layer: Tasked with formulating and upholding the policies/rules/regulations governing the ecosystem. These rules oversee the infrastructure, such as validator nodes and identity systems for people, DAOs, application rules, financial aspects like inflation rates, etc. The process and authority for policy-making form part of these modules.

• Executive Layer: Responsible for implementing and maintaining the policies. This encompasses the operation and upkeep of software and infrastructure, including remuneration for developers, administrators, lawyers, and payments to infrastructure node operators. Policies under ecosystem governance are executed within these features, adhering to Elinor Ostrom's principles of effective policy implementation.

• Judicial Layer: Charged with interpreting policies in dispute scenarios. This involves an arbitration system capable of enacting positive reinforcements or sanctions to uphold policies in compliance with arbitration standards.

The flexible and modular approach using DAOs and groups allows the governance system to separate these three powers into separate groups of actors.

Figure 15: Governance Layer

State-Nation Governance comparison:
Traditional governance models heavily favour state-nation power. In contrast, Tonomy’s technologies offer flexibility for governments to balance governance power between state-nation and lower governmental levels, promoting adaptability and versatility.

Cryptocurrency/Cardano Comparison:

Unlike most cryptocurrencies that rely on singular, financially incentivised governance models (proof of stake or similar), Tonomy supports both financial incentive models and truly democratic approaches (one person, one vote). It also advocates for a modular and upgradable governance framework, accommodating ecosystem evolution and growth. In addition, all or most of the governance and administration decisions and configuration must be done by developers still using developer tools. In Tonomy Gov, the no-code platform allows non-developers to easily participate in decisions and execution of core ecosystem and DAO management.