On-Chain Governance Decision

Definition ∞ An On-Chain Governance Decision is a resolution or change to a blockchain protocol or decentralized application that is proposed, voted on, and enacted directly on the network itself. These decisions, typically made by token holders, determine future protocol upgrades, treasury allocations, or operational parameters. The process is transparent and auditable on the public ledger.
Context ∞ News frequently reports on significant On-Chain Governance Decisions, as they reflect the collective will of a protocol’s community and dictate its future direction. Debates often center on voter participation, the concentration of voting power, and the efficiency of the decision-making process. These decisions are critical for the evolution and adaptability of decentralized systems.