18 Sep USD Coin (USDC)
USD Coin (USDC)
USDC is a US dollar collateralized stablecoin. It aims to provide a trusted, regulated, consortium-governed, private-issued digital dollar for individuals and businesses around the world. The main measure of success is circulating supply, which right now stands at over $11B.
The main coordinating entity is the Centre consortium (centre.io), an entity founded by Circle and Coinbase (original members). Centre's function is to own and manage the USDC IP and standard, and govern its use, most importantly issuance, by assigning and managing the good standing of issuer memberships.
The issuer members are approved by the Centre consortium. Entities willing to mint / redeem USDC directly with the issuing members (Circle / Coinbase) have to be fully authenticated and verified with those entities. Parties transacting with USDC on the supported blockchains (Ethereum, Algorand, Solana and Stellar) don't need to be identified (except for using specific 3rd-party services that might require it). USDC is open and permissionless.
The various USDC implementations on supported chains are open-source, with consortium members being the ones that can approve changes. Any community member can in theory propose technical changes.
Not yet, but there are informal committees at the Centre consortium level where community / industry participation exists and is encouraged.
Goals and Implementation
Both the Centre consortium and its members do use their resources to fund various types of enhancements.
The Centre consortium board has ultimate governance power over relevant decisions on the USDC standard.
The Centre consortium board of directors. The process involves committees that work on proposing changes; and board decisions where voting on proposed changes takes place.
The Centre consortium, in consultation with issuing members, does.
The issuing members typically execute change proposals once they are approved.
The Centre consortium has external board members whose mandate is to maintain accountability and ensure checks and balances.
Yes there are certain governance changes that per policy require majority or supermajority voting.
The nature of multiple issuer members does cause governance and change management to be more complex and time consuming for sure.
Governance mechanisms and policies are constantly revised and updated. The implementation of USDC on multiple changes was an important governance change worth mentioning.