Corporate Governance Model

Definition ∞ A corporate governance model defines the system of rules, practices, and processes by which a company is directed and controlled. It specifies the distribution of rights and responsibilities among different participants, such as the board of directors, managers, shareholders, and other stakeholders. This framework influences how objectives are set and achieved, how risk is monitored, and how performance is optimized.
Context ∞ For digital asset companies and blockchain protocols, corporate governance models are a critical area of scrutiny, particularly concerning transparency and accountability. Debates often center on adapting traditional governance structures to the decentralized nature of many crypto projects. The development of robust and fair governance mechanisms is paramount for establishing long-term viability and trust in the digital asset sector.