Governance

Governance is the set of rules, structures, and processes through which decisions are made within an organisation, a project, or a protocol. It concerns, for example, how changes are proposed and approved, and who has the right to participate in decisions.

In the context of crypto-assets, people often refer to on-chain governance, in which decisions are voted on directly on the blockchain, sometimes through specific governance tokens. The voting rights associated with these tokens do not constitute a financial right and should be distinguished from a company’s shares.