Governance and Controls

Definition ∞ Governance and controls encompass the systems, rules, and processes by which an organization or a decentralized protocol is directed and monitored. Governance dictates decision-making structures and participant rights, while controls refer to the mechanisms that ensure operations align with stated objectives and policies. These elements are essential for accountability and effective management.
Context ∞ In the digital asset space, particularly within decentralized autonomous organizations and blockchain protocols, governance and controls are central to community decision-making and protocol evolution. News reports frequently cover debates about voting mechanisms, proposal processes, and the distribution of power among token holders. Effective governance and robust controls are vital for the long-term stability and adaptation of decentralized projects.