Day 0 of Governance

The art of making decisions

What is Governance?

As per Cambridge Dictionary,

Governance is the way that organizations or countries are managed at the highest level, and the systems for doing this

So what does Governance mean for Blockchains? Leveraging a one line summary from a brilliant article on Blockchain Governance by 101 Blockcahins -

Blockchain governance is the idea of managing the ever-changing state of blockchain’s needs and demands.

What are the kinds of Blockchain Governance?

Blockchain Governance can be classified on two primary criteria - whether they are on chain or off chain.

On Chain Governance

Simply put, this kind of governance requires all actions around Governance to take place on the blockchain.

• It brings the advantages of blockchain along with it including trust, transparency and accountability

• It often times involves leveraging network tokens to determine eligible participants and ensure that everyone that has a stake in the network has a chance to contribute to its decisions

Off Chain Governance

This kind of governance takes place informally, away from the primary code of the blockchain.

• Its primary advantages are higher voter turnout and easier processes for non-blockchain native users

• There is generally no requirement for a network token in this kind of governance and it resembles real world politics