The Collective Action Problem of On-Chain Governance

Mallika Parlikar
Sep 16, 2019 · 8 min read

Defenders of on-chain governance praise the model for its efficient decision-making and rapid implementation. Critics of the on-chain model argue that it disenfranchises Node Operators removing the critical ability to fork a protocol update, or not. The defenders respond:

“Stakeholders have a very clear and broad incentive to do what’s right for the network”

“A stakeholders incentive to increase the value of existing token