Self-Adjusting Governance

Definition ∞ Self-Adjusting Governance refers to a system where the rules and parameters governing a decentralized protocol can automatically adapt and change based on predefined conditions or community input. This mechanism allows the protocol to evolve without manual intervention, responding to market dynamics, security needs, or user preferences. It aims to create a resilient and adaptive system that can autonomously optimize its operations. Such systems often incorporate on-chain voting.
Context ∞ Self-adjusting governance is a cutting-edge concept in decentralized autonomous organizations (DAOs) and advanced blockchain protocols. Crypto news sometimes covers experiments with these adaptive systems, particularly in the context of managing protocol parameters or treasury allocations. The debate often centers on balancing true decentralization with the need for efficient and secure decision-making in autonomous environments.