What is Governance?

Governance in blockchain systems encompasses the formal and informal mechanisms through which stakeholders influence protocol development, parameter adjustments, resource allocation, and strategic direction, creating legitimacy and accountability in decentralized networks.

Effective governance balances competing interests through carefully designed voting systems, proposal processes, and execution mechanisms that prevent capture by powerful minorities while enabling meaningful participation from diverse community members.

Through on-chain and off-chain processes, governance enables protocols to adapt to changing conditions, resolve disputes, and implement improvements while maintaining the core values and security that users depend on for their digital assets and interactions.

The evolution of governance models represents one of blockchain's most significant innovations, experimenting with new forms of collective decision-making that could address limitations in traditional governance systems while creating more responsive and representative institutions.

As blockchain networks manage increasingly valuable resources and critical infrastructure, governance design has become essential to ensuring these systems remain secure, innovative, and aligned with their communities' long-term interests and values.