Decision-Making Engine

Definition ∞ A decision-making engine in digital asset systems is an automated component that processes data and executes actions based on predefined rules or algorithms. This engine can manage various functions, such as protocol upgrades, liquidity adjustments, or risk parameter modifications. It operates without human intervention once activated. The objective is to ensure consistent and efficient system operation.
Context ∞ The design and implementation of decision-making engines are central to the operation of decentralized autonomous organizations and automated market makers. Debates often concern the transparency and auditability of these engines’ logic. News stories frequently cover proposals for new engine functionalities or discussions surrounding their governance structures.