Overview
Governance in Web3 refers to how decisions are made regarding the future of a blockchain or decentralized application. Because there is no CEO or board of directors, governance must be handled through community-driven mechanisms.
Key Components
- Proposals: Formal suggestions for changes (e.g., EIPs, BIPs).
- Voting: The process by which stakeholders approve or reject proposals.
- Execution: How the approved changes are actually implemented (either automatically via code or manually by developers).
Challenges
Balancing efficiency with decentralization, preventing 'voter apathy,' and protecting against 'governance attacks' by large token holders.