Definition ∞ A decentralized governance model distributes decision-making authority across a network of participants rather than concentrating it in a central entity. In blockchain protocols and decentralized autonomous organizations, this typically involves token holders voting on proposals concerning protocol upgrades, treasury management, or operational parameters. This model aims to promote community ownership and resistance to censorship. It supports transparency and accountability in system evolution.
Context ∞ The central discussion around decentralized governance models concerns achieving effective participation and preventing whale dominance, where large token holders disproportionately influence outcomes. Critical future developments include the exploration of novel voting mechanisms, such as conviction voting or quadratic voting, to improve representation and mitigate voter apathy. The long-term viability of many decentralized projects depends on the robustness and fairness of their governance structures.
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