Policy-Driven Governance

Definition ∞ Policy-driven governance refers to a system where operational decisions and system behaviors are automatically executed or enforced based on predefined rules and policies. This approach minimizes manual intervention and ensures consistent adherence to established guidelines. In digital systems, these policies can be codified into software or smart contracts, enabling autonomous regulation. It promotes predictability and compliance within complex environments.
Context ∞ In blockchain and decentralized autonomous organizations (DAOs), policy-driven governance is a central concept for automating the management and evolution of protocols. Debates often focus on the balance between automated policy execution and the need for human oversight or adaptability to unforeseen circumstances. A critical future development involves the creation of more sophisticated and adaptable on-chain policy engines that can respond to dynamic conditions while maintaining security.