Governance Structures

Definition ∞ Governance structures define the rules, processes, and mechanisms by which decisions are made and implemented within an organization or, in decentralized contexts, a blockchain protocol. In digital asset projects, these structures often involve token holders voting on proposals affecting the network’s future development. Effective governance is essential for the long-term viability and adaptability of decentralized systems. These structures determine how changes are adopted.
Context ∞ The current discussion around governance structures in blockchain often examines the effectiveness of decentralized autonomous organizations (DAOs) in achieving fair and efficient decision-making. Debates persist regarding voter participation rates and the potential for whale dominance in token-weighted voting systems. A critical future development involves the emergence of more sophisticated and inclusive governance models that balance decentralization with operational efficiency.