Protocol Adjustment

Definition ∞ A Protocol Adjustment signifies a modification or update to the fundamental rules and procedures governing a blockchain network or decentralized application. These changes can relate to transaction fees, block size, consensus mechanisms, or token economics. Such adjustments are typically proposed by developers or community members and then voted upon by stakeholders through a governance process. Their implementation aims to enhance network performance, security, scalability, or address existing issues.
Context ∞ Protocol Adjustments are frequently reported in crypto news, especially when they represent significant upgrades or contentious changes to a major network. Discussions often center on the impact of these adjustments on network participants, including miners, validators, and users. Successful adjustments can improve a protocol’s long-term viability, while poorly managed ones can lead to network splits or community discord. The process of implementing such changes tests the resilience and effectiveness of a project’s decentralized governance model.