Stablecoin Governance

Definition ∞ Stablecoin governance refers to the rules, processes, and mechanisms that oversee the operation, stability, and evolution of a stablecoin. This includes decisions regarding collateral management, reserve auditing, protocol upgrades, and dispute resolution. Effective governance is essential for maintaining the stablecoin’s peg and ensuring its long-term reliability.
Context ∞ The governance of stablecoins, particularly decentralized ones, is a subject of intense debate and regulatory scrutiny. News frequently covers discussions around the transparency of reserves, the voting power of token holders, and the overall resilience of governance structures. Robust stablecoin governance is critical for user trust and the broader financial system integration of these digital currencies.