Definition ∞ Ecosystem self-governance describes a system where the participants within a digital asset ecosystem collectively manage and direct its development and operational parameters. This is typically achieved through decentralized autonomous organizations, where token holders vote on proposals affecting protocol upgrades, treasury allocation, and other critical decisions. It aims to reduce reliance on central authorities and promote community ownership. This model prioritizes transparency and participant control.
Context ∞ The state of ecosystem self-governance is continually evolving, with various protocols experimenting with different voting mechanisms and decision-making structures. A key debate concerns voter apathy and the potential for concentrated power despite decentralized design. Future developments include more sophisticated governance tooling, liquid democracy models, and mechanisms to incentivize broader and more informed participation.
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