Decentralized Governance
Also known as: Community Governance, Token-Based Governance, On-Chain Voting
A decision-making process where power is distributed across a blockchain community, often via token-based voting.
Decentralized Governance is the method by which blockchain communities manage upgrades, funds, and protocol decisions through distributed participation. It replaces centralized control with collective voting systems, usually powered by governance tokens. Proposals are submitted, debated, and voted on by the community, enabling transparency and community alignment. Governance may be on-chain (automated via smart contracts) or off-chain (community-driven with manual enforcement). Successful decentralized governance requires active participation, good incentives, and mechanisms to prevent plutocracy or voter apathy.