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.
The thirty percent reduction in SEC enforcement activity signals a definitive pivot toward a policy-first, rules-based regulatory framework for digital assets.
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