Rules-Based Framework

Definition ∞ A Rules-Based Framework describes a system of governance or operation that relies on predefined, explicit criteria and automated execution. Decisions and actions within this framework are determined by a set of clear, objective rules rather than discretionary human judgment. This structure ensures consistency, transparency, and predictability in system behavior. It reduces ambiguity and potential for bias.
Context ∞ In the context of digital assets, a Rules-Based Framework is central to the operation of smart contracts and decentralized autonomous organizations (DAOs). A key discussion revolves around designing these rules to be robust, fair, and adaptable to unforeseen circumstances. A critical future development involves creating more sophisticated and self-amending rules-based systems for blockchain protocols.