Governance Process

Definition ∞ A governance process defines the rules, procedures, and mechanisms by which decisions are made within a decentralized network or organization. This typically involves stakeholders proposing, debating, and voting on changes to protocols, parameters, or operational policies. Effective governance ensures the sustainable development and management of a digital asset ecosystem.
Context ∞ News regarding governance processes frequently covers proposals and voting outcomes within major blockchain protocols like Ethereum or decentralized autonomous organizations (DAOs). Reports often analyze the effectiveness of these mechanisms, debates over protocol upgrades, or the distribution of voting power among token holders. Understanding these processes is essential for assessing the direction and evolution of decentralized projects.