Off Chain Coordination

Definition ∞ Off-chain coordination refers to activities, agreements, or processes among participants in a blockchain ecosystem that occur outside the direct recording and execution of the distributed ledger. This includes communication, dispute resolution, or strategic planning that influences on-chain actions but is not itself recorded on the blockchain. It often serves to enhance efficiency, privacy, or scalability by reducing on-chain load. This approach complements on-chain governance.
Context ∞ In the context of decentralized autonomous organizations (DAOs) and large blockchain projects, off-chain coordination is a common practice for discussing proposals, building consensus, or resolving minor issues before formal on-chain voting. News reports often cover the outcomes of such coordination efforts, as they shape the direction of protocol development and community decision-making. The balance between off-chain and on-chain activities is a continuous discussion point for network governance.