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Following
ICP Governance is built into the protocol
Most blockchains still handle upgrades in the traditional way: developers write the code, node operators install it, and then everyone prays that the coordination process goes smoothly. When problems arise with this process, different versions of the chain (i.e. hard forks) become a real risk.
Internet Computing (DFINITY) takes a different approach. The Network Nervous System (NNS) is a fully autonomous, on-chain governance organization built directly into the Internet's computer protocols. It is a decentralized autonomous organization that runs completely on the chain and is responsible for upgrading the network at the protocol level.
The proposal could update duplicate software versions run by node machines, while traditional blockchains must complete similar operations through a slow and confusing hard fork process, which often poses security risks. Because NNS runs within the Internet Computer Protocol, it can implement changes without disrupting network operations or compromising security.
How neurons, voting rights and rewards work
$ICP utility token holders on Internet computers can lock tokens into neurons to participate in governance and contribute to decision-making. These neurons must be locked in for a specific period of time (between six months and eight years) to be eligible to vote and receive voting rewards.
Voting rights do not simply depend on how many tokens the holder has locked in. The voting rights of a locked neuron are determined by the following factors: the amount of pledge (1 ICP equals 1 vote), the dissolution delay time (six months provides a 1.06-fold bonus, eight years provides a 2-fold bonus, and other periods are linearly scaled), and The age of the neuron (four years provides a 1.25-fold bonus, multiplied by other bonuses). The maximum voting rights that can be obtained for each ICP pledged is 2.5 votes, which can only be achieved by locking the neuron for eight years and keeping it locked for four years.
Neuron holders do not need to manually track every proposal. NNS achieves mobile democracy: voting neurons created by pledging ICPs can be configured to automatically follow other neurons to vote, allowing the network to form decisions step by step. Throughout the process, the holder has full ownership of its $ICP.
Participation in governance comes with economic incentives. Voting rewards are assigned to those participants who lock the ICP in the neuron and vote manually or by following other voting neurons. Rewards are paid out daily in the form of "maturity", an unrealized ICP that can choose to pledge or generate new neurons.
The range of votes that token holders can vote is very wide. NNS can perform the following tasks: upgrade node machines to update protocols or apply security patches, adjust economic parameters, or create new subnet blockchains to increase network capacity. Once approved by ICP token holders, these changes will be automatically deployed by NNS to achieve a seamless upgrade of the network.
The final governance model is that influence is not determined by passive holding of tokens, but by active participation. Just holding an $ICP is not enough. Users must lock tokens into neurons, choose their voting preferences, and interact with the system to gain influence and rewards. In this sense, NNS is not only a governance layer running on top of Internet computers, it is itself part of the network operating mechanism.
