Data-Driven Governance

Definition ∞ Data-driven governance is a governance model where decisions regarding a system or protocol are informed and guided by verifiable, on-chain data and analytics. This approach uses metrics such as network usage, transaction volumes, token holder activity, and protocol performance to evaluate proposals and steer strategic directions. It seeks to introduce objectivity and quantifiable evidence into the decision-making processes of decentralized autonomous organizations or other blockchain systems. Such governance aims for greater efficiency and alignment with network health.
Context ∞ Data-driven governance is a developing area within the DAO ecosystem, aiming to enhance the efficacy and legitimacy of decentralized decision-making. News often covers new analytical tools and frameworks designed to provide better insights for token holders. A key discussion involves balancing raw data with qualitative considerations and preventing manipulation of metrics to influence outcomes.