Various decisions are required in relation to platform operation, such as investment in NFTs, linking with other platforms, fees, compensation for transactions, addition of payment tokens, disposal of staked assets, and issuing and burning tokens. We also need the feature to set standards and supervise copyright infringement and inappropriate content. In the case of a centralized platform, unilateral rule decisions and frequent changes may result in innocent victims or harm the community interest due to decisions biased toward the platform's interests, such as fee increases. If platform participants manage and decide important matters by voting through DAO based on complex trust criteria such as token holdings, contribution, staking amount, and user rating, they can reduce the harm caused by these practices. If users and sponsors who have a direct stake in the ecosystem decide through voting, they will be able to make fairer decisions, and this can be a way to solve the ‘tragedy of the commons’ problem that harms the common interest.
The Governance consists of the following parties: NARA token holders, users, developers (DApp, Mainnet, protocol), node operators (BP, block producers), proposers, and other DAO members (sponsors, indirect participants, investors, etc.) Details of the NFTNARA Governance include: The first is a decision-making structure system. This includes the basic system such as total coin issuance, additional issuance, and fee changes, as well as reconciliation, arbitration or mediation mechanisms in case of conflicting opinions. The second is the reflection of the incentive system in the design: reward system, voting rights, penalties, etc. The third is to determine the token issuance and distribution mechanism, and this includes what percentage will be allocated to the foundation founders, core members, developers, advisors, etc. in case of the pre-mined method and determining the token matrix to be allocated to early investors (Pre Sales), advertising, system and project development, etc.