A structure through which a participant or user of a system agrees to use the system
There are three key elements of governance: Rulers, Rules and Participants. The rulers set the rules based on the participants goals and needs.
Governance types:
- Standard (e.g., corporations, non-profits, partnerships &c)
- Direct (each user takes part in the governance model by directly affecting every decision. Votes determine the actions)
- Representative (user vote to choose a representative who makes decisions on their behalf)
- Blockchain (managing the ever changing state of the blockchain’s needs nand demands)
- Off-chain/On-Chain
- off-chain/soft- similar to institutions - a group of individuals trusted by the community form a group which is responsible for the blockchain’s governance and well-being
- on (self governing) - users within the cshain, directly vote on decisions to be made, changes are then made automatically depending on the outcome - this all happens intra-protocol
- Governance of the infrastructure/governance by the infrastructure
- Off-chain/On-Chain
Block chain governance
Four central parties
- Core developers
- Node operatoes
- Token holders
- Blockchain team
On chain governance
users within the chain directly vote on decisions to be made, changes are then made automatically depending on the outcome - this all happens intra-protocol
some say this method is dangerous 1 because it uses a one-vote-per-person system, and therefore is vulnerable to the sybil-problem. To counteract this some use a one-vote-per-coin system via proof-of-stake. However this means that people/orgs with more coin have more weight in their votes — this is at best a plutocracy
blockchains are experimental and are evolving rapidly. There already exists good models for governing hard technical projects: the Linux Foundation and the IETF. democracies are not suited for fast, robust, change — they waste a lot of time and effort on campaigns, etc.
Governance of open vs closed blockchains
open chains are usually governed using on or off chain governance.
closed chains completely controlled by the governing authority. they are in charge of development, they have complete control over the blockchain, and decides who can participate.
public permissioned blockchains