The article discusses blockchain governance and how it aims to design systems that balance the interests of all stakeholders. The challenge is defining the boundaries of governance, that is, identifying the stakeholders involved. The identification of stakeholder groups and formal and informal structures for decision-making in blockchain governance has been a contested issue since the Nakamoto era. On-chain governance involves building governance arrangements within the protocol itself, while off-chain governance involves structures external to the protocol, such as the role and management of foundations or firms funded by token sales.
- Blockchain governance involves designing decision-making processes for decentralized digital network protocols to ensure success.
- Stakeholder identification and management is a crucial aspect of blockchain governance, requiring the balancing of different groups’ incentives and interests.
- Blockchain governance must consider the impact of the network on society and the environment and involve relevant stakeholders to ensure sustainable development.