Token Governance Structure

Definition ∞ A token governance structure defines the rules, mechanisms, and processes by which decisions are made and implemented within a decentralized protocol or digital asset project. This typically involves token holders voting on proposals related to protocol upgrades, treasury management, or parameter adjustments. Its design aims to distribute control and promote community participation.
Context ∞ Debates concerning token governance structure frequently address issues of voter participation, potential centralization of power among large token holders, and the effectiveness of decentralized autonomous organizations (DAOs). Optimizing these structures for genuine decentralization and efficient decision-making remains a key area of ongoing development and discussion.