Introduction
Most people oversimplify blockchain governance, seeing it only as protocol forks or on-chain voting. In reality, it extends far beyond formal processes. The bulk of the governance process happens informally on social media, where stakeholders use persuasion and propaganda to shape narratives and influence decisions. This article aims to provide a complete understanding of blockchain governance, why it matters, how to participate, and its broader political implications.
Why is Blockchain Governance Important?
Many people feel apathetic about blockchain governance, assuming it’s only for experts like Vitalik Buterin or Tim Roughgarden. However, everyone should care because the ecosystem is still evolving, and today’s decisions will shape its future. Right now, individuals have more influence than they ever will, as the space will inevitably become more formalized and regulated. Participating now is an opportunity to shape and align the ecosystem with your values. With that in mind, let’s explore what “blockchain governance” means.
Blockchain Governance: The Definition
Blockchain governance involves stakeholders coordinating decisions, establishing legitimacy, and maintaining or revoking norms and processes. Many assume governance is limited to formal proposals like Ethereum Improvement Proposals (EIPs), but informal governance—debates, narratives, and persuasion—plays an equally crucial role. Legitimacy doesn’t come from documentation alone; widely accepted but unwritten norms can shape the ecosystem just as much as formalized rules.
The key to understanding blockchain governance is recognizing the power of informal governance. While formal governance follows structured procedures, informal governance is dynamic, spontaneous, and often more influential. In decentralized systems, formal governance tends to ratify decisions that informal governance has already shaped through community sentiment and discourse.
Major blockchain shifts, like Ethereum’s pivot to rollups or Bitcoin’s transition from currency to a store of value, were not decided through formal votes but through community influence and persuasion. Even technical proposals, such as EIP-3074’s removal in favor of EIP-7702, were ultimately settled through informal discussions on Twitter rather than structured governance channels.
These examples highlight that informal governance is real and often more impactful than formal governance. Key decisions that define blockchain networks frequently emerge from public discourse rather than official processes. The good news is that anyone can participate, and with strategic influence, individuals can shape the future of blockchain.
Participating in Blockchain Governance
There’s no official rulebook for blockchain governance, and each community has its nuances. However, the most effective way to participate is through politics by signaling your preferences, rallying like-minded stakeholders, and influencing the broader conversation. This can happen on Twitter, in-person meetups, articles, or any medium encouraging governance engagement. Ultimately, it comes down to three key principles: the vision or ethos, proposals, and stakeholders.
Elements of Blockchain Governance
- Vision/Ethos: The shared social, cultural, and political values of a blockchain shape its long-term vision, influencing all governance decisions.
- Proposals: Ideas or actions that advance or redefine a blockchain’s vision, ranging from formal documents to subtle narratives.
- Stakeholders: Blockchain governance involves multiple stakeholders, including core devs, app devs, researchers, node operators, token holders, and users, each with varying influence and incentives.
- Incentives: Stakeholders participate based on financial, social, or ideological incentives, which shape governance decisions and stakeholder alignments.
Conclusion
Blockchain governance is a complex and dynamic process that extends far beyond formal proposals and technical upgrades. It is shaped by a blend of vision, proposals, stakeholders, and incentives, with informal governance often playing a more significant role than structured decision-making. Social influence, discussions on platforms like Twitter, and subtle narratives can drive major protocol shifts just as much as formal voting mechanisms. Understanding these dynamics allows participants to engage meaningfully by contributing technically, signaling preferences, or influencing discussions. Ultimately, blockchain governance is about shaping the future of decentralized networks, and those who actively participate have the opportunity to leave a lasting impact.
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