An exemplary governance model for enterprise-grade public blockchain requires a specific set of qualities: transparency, integrity, and performance. It is the VeChain Foundation’s unwavering vision to maintain and improve such a model and ensure a robust, detailed design that utilizes a mutually reinforcing mix of legal, cultural, market, and codified elements to help steer the collective.
Since the initial stages of our development, we have been acutely aware of the significance of the governance model, which is the only path to achieving responsible and knowledgeable decision making that represents and benefits all stakeholders of the VeChainThor public blockchain.
As per the Governance Chapter, the Steering Committee (“SC”) of the VeChain Foundation, elected by eligible stakeholders of the ecosystem every two years, facilitates the efficiency of decision making and ensures the fairness and effectiveness of execution on fundamental matters that require stakeholders’ input, as well as on additional decisions assigned to the SC.
After the postponement of elections in 2020 due to COVID-19, we have been actively searching for candidates that share the vision of creating a distributed business ecosystem on top of the VeChainThor blockchain while at the same time, represent various stakeholders in the ecosystem. Today, the time has come to resume the process and share the excitement of the Steering Committee elections with the entire community.
We hereby introduce the following process of the 2nd term Steering Committee election.
Criteria and Eligibility of SC Member Candidates
As determined by the current Steering Committee, the size of the 2nd term Steering Committee will remain as seven. SC member candidates are nominated based on three categories:
1. Current SC members who decide to run for the next term
2. Candidates nominated directly by the Foundation nomination committee
3. Candidates who publicly announce their intentions to run for the 2nd term Steering Committee member
The total number of candidates from the above three sources can not exceed 14 in the final phase of all-stakeholders voting.
For candidates in all three categories above, before expressing the intention to run as a candidate to be a Steering Committee member, an applicant must meet the following criteria:
1. Announce the intention to run for the SC member on real name basis
2. Minimum age of 21 years old
3. Is not a “disqualified persons” according to 4.2.1 Size, Composition and Criteria of the Governance Charter
4. Proof of Holding 500,000 VETs
According to the VeChain Foundation Governance Charter, SC member candidates are required to meet the following qualitative criteria:
1. Integrity, objectivity, sound judgment and leadership
2. Relevant expertise and experience required to offer advice and guidance to the development strategy of the Foundation
3. The ability to make independent analytical inquiries, collaborate effectively and contribute productively to the Steering Committee’s discussions and deliberations
4. A commitment to enhancing the long-term value of the VeChainThor Blockchain for all stakeholders
5. An understanding of the Foundation and blockchain operation, strategy and challenges
6. The willingness and ability to devote adequate time and effort to Steering Committee responsibilities and to serve on Functional Committees at the request of the Steering Committee
In addition, as part of SC members’ job role, each member is required to oversee a functional committee which fits his/her field of expertise. SC members are expected to provide strategic guidance on the operation and continuous development of the VeChain Foundation organization, blockchain technology and ecosystem. Members usually represent the VeChain Foundation in various occasions such as professional associations, academic organizations, industrial forum, technical conferences and so on, in which they should be capable of elaborating VeChain’s strategy and vision and bringing the resources to help the growth of the ecosystem.
What is the Role of Steering Committee Members?
The Steering Committee represents the VeChainThor blockchain stakeholders’ interests in the long-term development of the technical infrastructure, business expansion, and VET value enhancement. The Steering Committee is responsible for establishing the general oversight and framework, including the design of the operating rules of the blockchain, that are intended to achieve these goals. The proposed oversight and framework for these goals would then be implemented by the functional committee teams. Steering Committee members except for members from the VeChain team will receive a fixed amount of VTHO tokens as compensation, and the Foundation will cover travel expenses and accommodation for members to attend board meetings, except for members that are located directly at the city in which the meeting would be held.
Principle responsibilities of the Steering Committee are to:
1. Propose and organize all stakeholder voting events for fundamental issues of the VeChainThor Blockchain
2. Execute the on-chain governance operations and ensure proper decision making process is followed
3. Review, approve, and monitor the Foundation’s major strategic, technical, financial, and business activities
4. Provide strategic guidance based on the report of the functional committees in various areas
5. Review, modify and approve the governance principles of the Foundation
6. Review, approve and monitor the Foundation’s annual budget, financial status including VET holdings, use of proceeds and its major transactions
7. Review, approve and monitor the procedure of nomination and election of the Steering Committee members, functional committee chairs and the General Secretary of the Foundation
8. Review, approve and monitor the operation model of VTHO (operating cost basis of the VeChainThor Blockchain) and valuation model of VET
The Steering Committee members meet at least quarterly. In addition to the regularly scheduled meetings, unscheduled meetings may be called, upon proper notice, at any time to address specific needs of the Foundation. Members are expected to attend and participate in the quarterly meetings in person. In case of any special circumstances that do not allow the member to attend in person, the member should attend telephonically and notify the designated supporting administrative staff or the General Secretary in advance of the meeting.
As the governing body of the VeChain Foundation, each Steering Committee member holds a VeKey device which stores one of the addresses that are authorized to conduct on-chain governance operations, such as modification of Authority Masternodes, modification of technical on-chain parameters. Members are responsible to securely keep their VeKey and conduct on-chain governance operations in a timely manner as requested.
On the other hand, as a representative of the VeChain Foundation, SC members are obliged to keep the information discussed in the meetings confidential and not to provide any public comment that could potentially impact the market.
Overview of the VeChain Foundation Steering Committee Election Process
Assuming no acts of force majeure, an election for the VeChain Foundation Steering Committee happens every two years. The term of the next Steering Committee will start from March, 2022.
The planned timetable of the VeChain Foundation 2nd term Steering Committee election process
November 1st, 2021 - January 25th, 2022 - Candidates of all the three categories mentioned above submit required applications and their declaration of Intentions (DOI) to the VeChain Foundation election operation team via this form.
The operation team will be responsible for KYC verification and all candidates will know whether they are eligible within 7 working days through their provided email address. All verified DOIs will be posted by the operation team on Reddit (r/vechain) for all community members to see.
Anytime after DOI - February 9th, 2022 - Eligible candidates can freely promote their ideas and vision for the VeChain ecosystem; Candidates or the community may organize AMAs, presentations, debates at this stage.
February 10th, 2022 - The Foundation holds the first phase of all stakeholders voting (“first phase voting”) on the VeVote platform to determine the shortlist for the final phase voting. The shortlist includes Category 2&3 who have pre-accessed the KYC by the VeChain Foundation election operation team.
February 20th, 2022 - The Foundation holds the final phase of all stakeholders voting (“final phase voting”) on the VeVote platform to elect the 2nd term Steering Committee from the shortlist. Candidates include the current SC members who wish to continue and the shortlisted winners from the last round of voting.
February 28th, 2022 - The Foundation counts the stakeholder votes and announce the 2nd term VeChain Foundation Steering Committee members
March 1st, 2022 - Inauguration Day of the 2nd term VeChain Foundation Steering Committee
March 1st, 2022 - March 31st, 2022 - Steering Committee handover
*The actual dates may be subject to change as the Foundation operation team deems appropriate.
How do I announce the intention to run?
Starting from November 1st, eligible applicants can submit all required applications, including the declaration of intention to the VeChain Foundation operation team (form link) .
For Category 2&3 candidates, all required applications should be first reviewed by the VeChain Foundation operation team to ensure the applicant passes the KYC and meet the basic requirements before the VeChain Foundation operation team posting the applicant’s declaration of intention to the “2nd Term Steering Committee Election” section on Reddit.
The declaration of intention by eligible candidates should encompass the following matters, of which the application form provides detailed templates:
1. A declaration of willingness to enter the election and the association (if any) with authority masternodes, developers, enterprise users, and business partners (which determines if the applicant is qualified as an independent member)
2. A detailed resume/CV with information about identification, profile, education, experience, skills, professional certification, accomplishments
3. A personal (strategy/vision) statement
1. Declaration of intention, multi phased voting
The election process begins with applicants and candidates in all three categories announcing their intentions to run for the 2nd term VeChain Foundation Steering Committee. Candidates of Category 1 will automatically enter the final election shortlist.
Category 2&3 candidates, after passing the Foundation operation team’s preliminary review, need to be elected in the first phase voting in order to enter the shortlist for final phase voting together with the Category 1 candidates.
In the final phase, all stakeholders will cast votes on the candidates in the final shortlist and the seven candidates, in accordance with the Steering Committee composition rule, who receive the most voting authority of the casted votes will be elected for the 2nd term Steering Committee.
All the above voting events will follow the all stakeholders voting rules according to the VeChain Foundation Governance Charter.
2. What is the composition of the 2nd term Steering Committee?
As determined by the existing Steering Committee, the size of the 2nd term Steering Committee will remain as seven. Hence, according to 4.2.1 Size, Composition and Criteria of the Governance Charter in the 2nd term VeChain Foundation Steering Committee, stakeholder members that belong to the same entity can not occupy more than 3 seats and there should be at least one seat allocated to an independent member. In addition, the General Secretary of the Steering Committee will be elected by the 2nd term Steering Committee when it is formed.
The election process and the form of the Steering Committee should be interpreted in the context of all applicable laws. The onboarding of the Steering Committee members will follow the local/regional legal requirement where the VeChain Foundation is incorporated. The VeChain Foundation reserves the rights of final interpretation of the content hereinabove and modification to the process as deemed appropriate.
(NOT IN THE ARTICLE)
Appendix - Requirements on the Declaration of Intention
Please follow the below template to prepare your declaration of intention.
The Foundation operation team will review it to ensure the applicant passes the KYC and meets the basic requirements before posting your declaration to the “2nd Term Steering Committee Election” section on Reddit.
In addition to information required by the template, please complete and sign the cover letter and attach a signed copy at the beginning of your Declaration of Intention post as a picture file.
Declaration of Intention Template
Title: Declaration of intention for 2nd term Steering Committee member | your full name | Category [current SC member / nominated by the nomination committee / self-announced]
[Insert the signed cover letter as a picture file here]
Country of Residence:
Social Media (e.g. Twitter):
Are you qualified to be an independent member according to the VeChain Foundation Governance Charter 4.2.1 (Y/N):
[A high level introduction of yourself. Please indicate your background, areas of expertise, skills, working experiences, education, etc]
Professional Certifications and Accomplishments
[Please indicate the professional certifications you hold and accomplishments achieved such as publications, patents, honor and award, and the year you obtained them.]
[Please elaborate what makes you qualify to be a Steering Committee member, how your experience can benefit the VeChain Foundation, what you would do to contribute to the development of the VeChain ecosystem if you were elected.]
2 letters of Recommendations
[Please include (if any) recommendations from your colleagues, mentor, business partners or clients on your experiences, core competency and so on. Please mention the name and title of the person endorsing you.]
[Please state your vision for the VeChain ecosystem.]