The EigenLayer governance system EigenGov plans to form a council network, and EIGEN holders have the right to veto council decisions.

According to official sources, the Eigen Foundation issued an article introducing the first part of EigenGov, EigenLayer's governance system. The role of EigenGov is to maintain the coordination layer of the EigenLayer ecosystem, which consists of EIGEN holders, AVS developers, operators, and stakers, who are key players in the prosperity, security, and reliability of the EigenLayer protocol. EigenGov brings together ecosystem actors to support a shared vision of open innovation through a novel system that is both effective and decentralized. At the heart of EigenGov V1 is its council. EigenGov's power will be held by a network of councils made up of trusted high-context domain experts, empowered by Tokenholder to make decisions on behalf of the community, and held accountable through a system of checks and balances. The Council will have domain-specific powers to make decisions and take action on the EigenLayer protocol and EigenGov. These powers include decision-making power and the power to upgrade the core protocol contract (protocol council), the power to manage reward parameters (incentive council), the power to manage community grant budgets (grant council), and the power to set limits and evaluations on governance and governance authority (Eigen council). Each council will have a charter that governs the scope of its decision-making powers and powers, and over time, the number, scope of activities, and membership of these initial councils will continue to grow. EIGEN holders will have the right to veto Board decisions. In the near future, Eigen holders will also be able to (i) directly endorse the qualifications of EigenLayer contributors with knowledge or skills in certain subject matter that may qualify those contributors for membership of the Council, and/or (ii) assign authority to "curators" to whom the curator will make such recognition on behalf of those Eigen holders to whom the authority is assigned. This "endorsement" model is novel and should be distinguished from delegation. Decision-makers who have the trust of the community are promoted to board members and actively vote on all proposals. Tokenholder can veto proposals as needed to check for highly inconsistent decisions. In addition, Tokenholder will be able to comment on proposals before the Council votes, enhancing collective opinion without the need for detailed expertise on each issue. To address the challenges of effective and decentralization governance, the Eigen Foundation is implementing the incubation concept to create, appoint, and manage a council. Initially, the Decentralization structure incubated within the Eigen Foundation will serve as an independent council. Incubation ensures that the council functions effectively in the short term. It also provides time to research, develop, test, and iterate on new council and governance designs. These designs will deliver powerful decentralized solutions for the following key questions: Council Incentive: Reward Council members for continuous, high-quality, and long-term value creation. Council Coordination: Reduce principal-agent issues by creating a new system to support decentralized coordination of decision-makers and protocol requirements. Council accountability: Hold decision-makers accountable to Tokenholder through checks and balances, transparency, and reporting.