📌 Blockchain Governance Models Summary
Blockchain governance models are systems and rules that guide how decisions are made about changes, upgrades, and dispute resolution on a blockchain network. These models define who gets to propose changes, how those changes are approved, and how conflicts are handled. Governance can be centralised, with a small group making decisions, or decentralised, where many participants have a say.
🙋🏻♂️ Explain Blockchain Governance Models Simply
Think of a blockchain like a shared online game, where everyone follows the same rules. Blockchain governance models are like the ways players decide on new rules or fix problems in the game, either by voting together or letting a few trusted players decide. This helps keep the game fair and running smoothly.
📅 How Can it be used?
A project can use a blockchain governance model to let users vote on software updates or budget allocations.
🗺️ Real World Examples
The Ethereum blockchain uses a decentralised governance model, where developers, miners, and users discuss changes through public forums and improvement proposals before making upgrades to the network.
MakerDAO, a decentralised finance platform, allows holders of its MKR token to vote on proposed changes to its lending system, such as adjusting interest rates or adding new collateral types.
✅ FAQ
What is blockchain governance and why does it matter?
Blockchain governance refers to the rules and processes that decide how a blockchain network changes over time. It matters because it affects who gets to make decisions, how new features are added, and how disputes are settled. Good governance helps keep a blockchain fair and functional, while poor governance can lead to disagreements or even network splits.
How do centralised and decentralised governance models differ in blockchains?
Centralised governance models usually have a small group or organisation making decisions for the whole network, which can make changes happen quickly but might leave some voices unheard. Decentralised models give more people a say, often through voting or consensus, which can make the process slower but aims to be more inclusive and democratic.
Can anyone propose changes to a blockchain network?
Whether anyone can propose changes depends on the governance model of the blockchain. Some networks allow any participant to suggest updates, while others restrict this to a select group. The way proposals are reviewed and accepted also varies, but the goal is often to balance openness with the need to keep the network secure and stable.
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