On-Chain Governance
Also known as: Decentralized Governance, Blockchain Voting, Token-Based Governance
A blockchain-based governance system where protocol upgrades and decisions are made via token holder votes recorded on-chain.
On-chain governance is a decentralized decision-making process where changes to a blockchain protocol are proposed, voted on, and executed using smart contracts. Token holders or delegates cast votes directly on the blockchain, ensuring transparency and immutability. This model is used in projects like Tezos, Compound, and MakerDAO. On-chain governance supports trustless coordination, often with programmable quorums, vote weights, and execution thresholds. While offering efficiency and automation, it can also lead to plutocracy if large token holders dominate outcomes.