Bury 2.0 is more than your average staking upgrade. It’s a possible tectonic shakeup in the way that crypto projects are governed. We’re describing something much deeper, a new relationship between the haves and have-nots, a shift from passive asset holding to hands-on involvement. Throw out the previous “lock it and leave it” paradigm. This is staking with teeth.

Let's break down how this new approach, pioneered within the Shiba Inu ecosystem, could rewrite the rules of engagement for everyone.

Token Utility Is Now Governance

Bury 2.0 uses vote-escrowed (ve) tokens. Stake your $SHIB, $LEASH, $BONE or $TREAT, and receive veSHIB, veLEASH, veBONE or veTREAT in exchange. The longer you keep them imprisoned, the greater voting power you hold. This by itself would not be new, but the incorporation of this voting power into DeFi is.

Think of it like this: traditionally, staking was like putting money in a savings account. You were entitled to your interest, but you had no control over the bank’s operations. Bury 2.0 is like becoming a shareholder. For the first time ever, you’re not just earning rewards, you get a vote on some of the most important decisions we make. It’s a profound transition from earning an income to wielding political influence. That's a game-changer.

Power Shift: From Whales to Community

One of the most exciting things about Bury 2.0 is the opportunity to decentralize that control. This disincentivizes the type of whale dominance over voting that can plague traditional staking models which are easier and cheaper to design. Bury 2.0, with its time-weighted voting power, incentivizes longer-term stewardship and actively benefits engaged members.

Now picture a world where 20 whales couldn’t decide the outcome of an entire project. With Bury 2.0, the passion and numbers of a more engaged community can help to offset their power. This is not only equity—as these communities are on the frontlines of climate change—this is resilience. A more decentralized governance structure is harder to manipulate and easier to resist. It’s more flexible, too, making it better able to respond to shaking market forces. The once small voice of the combative itinerant shibizen is today a powerful and organized political force.

DeFi Becomes A Political Arena

This is where things get really interesting. The veTokens aren't just for show. They open up a universe of DeFi capabilities including yield farming, liquidity pools, and lending platforms. Your staked tokens are hard at work on your behalf. Their actions and your resulting voting power have direct implications for all of our lives.

Consider this: if you believe a particular DeFi strategy will benefit the ecosystem, you can vote to support it and participate in it directly. It’s an equally potent mash-up of looking out for oneself and doing right by one’s neighbors. This counter-intuitive integration creates a powerful dynamic where governance decisions directly shape the economic opportunities that stakers can provide and earn from. The incentives just couldn’t be more aligned. Today, DeFi is about much more than making a quick buck – it’s about being on the forefront of building the new ecosystem. To put it mildly, this is like using your financial portfolio to try to make a political statement.

States Within States: Localized Governance

When Bury 2.0 came along, there was something really, really cool added to the whole Shiba Inu ecosystem. Each state has its own unique veCurrencies, like veSTATE. This allows for localized governance and community projects, where individual states can tailor their strategies, policies, and rewards to their specific needs and priorities.

Imagine it as the United States of Shiba Inu. After all, each state has a distinct culture, economic makeup, and objectives. And with the arrival of Bury 2.0, they have the authority to do so under their own self-governance. Such a decentralized, localized approach would enable states to be more innovative and experimental, each pursuing their own DeFi governance models and state strategies. It opens the door to a more tangible connection between community members and the decision making that impacts them the most. I really think this is what’s going to unlock DAOs full potential.

The Dark Side And How to Fix It

No system is without its flaws, and Bury 2.0 is no different. One potential challenge is voter apathy. If participation requires too much effort or if the impact of individual votes seems insignificant, people may simply opt out. This can lead to a small number of committed players from having an outsized effect on power. Such a concentration would undermine the very goal of decentralization.

Another concern is the potential for manipulation. But sophisticated bad-faith actors will attempt to influence vote results. They may be able to engage in manipulative practices such as colluding with other large stakeholders or creating sham accounts. And we need to have firm mechanisms in place to identify and counteract this kind of manipulation.

To avoid these risks, projects need to emphasize informing users. In addition, they need to make voting easy and discover new ways to combat voter disillusionment. We need to be vigilant about detecting and addressing potential manipulation tactics, and we should be prepared to adapt our governance models as needed.

  • Ongoing Audits: Regular audits of the voting system and smart contracts.
  • Community Watchdogs: Empowering community members to report suspicious activity.
  • Dynamic Quorums: Adjusting quorum requirements based on voter participation.

What’s most important is making sure you’re treating governance like an ongoing experiment, always iterating and improving in the face of new challenges.

In sharing our vision through Bury 2.0, we are taking a big step forward to a more decentralized and participatory future for crypto governance. While it’s not a silver bullet, it is a promising model worth exploring and experimenting further. Continue to adopt veToken models and address the challenges that may arise along the way. As an ecosystem, let’s open up decentralized governance’s entire toolkit, creating more resilient, inclusive, and innovative blockchain ecosystems. Let's get to work.