On-chain Governance

 If blockchain is the foundation to a truly digital model, then governance is the key to linking together the on and off-chain worlds. 

Governance itself encompasses and dictates the functionality of blockchain, from its organization structure to workflow execution, voting and incentives. 

1. The digital world cannot be separated from reality.

On-chain governance dictates the usage of external funds, energy and human resources. It is both a reflection of today’s paradigm and a looking glass into the future. 

2. The on and off-chain worlds are merging as the boundaries between social and corporate governance become increasingly blurred. 

Significantly bolstering the pressing need for next generation governance at the protocol level.

3. The market is currently dominated by stake-weighted voting, which gravitates towards greater centralization, dynamic adjustments and third-party proxy agents.

On-chain governance depends heavily upon a network’s consensus mechanism of choice — which can be understood as the negotiation method by which the interests and rights of community developers, miners and token holders.

4. On-chain governance design. 

Future innovations in governance must also address the aforementioned concerns from a design level by offering voting stronger incentives for stakeholders, while also introducing loosely coupled voting to ensure more representative governance.

Elastic Manageability

  • coordinate the interests of various parties, 
  • balance decentralization and centralization, and
  • establish an effective incentives and consequences system.

https://cointelegraph.com/news/anchoring-the-worlds-with-flexible-and-high-performance-on-chain-governance

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