Definition ∞ Decentralized governance refers to a system where decisions within a protocol or organization are made collectively by its participants, rather than by a single authority. This is typically achieved through token-based voting mechanisms, where stakeholders propose and vote on changes to the system’s parameters or operations. It aims to distribute control and ensure that the protocol evolves according to the collective will of its community.
Context ∞ The effectiveness and fairness of decentralized governance models are under continuous examination, particularly as protocols scale and face complex decision-making scenarios. Debates often arise concerning voter apathy, the influence of large token holders, and the potential for governance attacks. The ongoing development of more robust and equitable governance frameworks is critical for the long-term viability and decentralization of blockchain projects.
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