In a crypto currency like Bitcoin, there is no formal system of governance. While this provides some advantages, a major drawback is that progress can grind to a standstill, as we’ve recently seen in the Bitcoin scaling debate, that resulted in a split within the community, and the creation of a competing currency.
PIVX has a blockchain-based governance system in which any community member can submit a proposal for consideration and discussion, after which certain PIVX holders, those operating “masternodes”, vote in a transparent and democratic way.
Proposals that are approved through voting are recorded to the PIVX blockchain, and if there is a funding request associated, the network begins the process of accumulating those funds for distribution in what’s known as the “PIVX Treasury”.
The self-governing system on which PIVX operates provides economically for the long-term sustainability of the network, as well as ensuring that decisions are made in an efficient and fair manner.