Overview
Off-chain governance resembles traditional open-source software development. Decisions are reached through social consensus among developers, miners/validators, and users, rather than through a direct on-chain vote.
How it Works
- Discussion: Proposals are debated on forums (like Reddit or specialized governance forums) and social media.
- Improvement Proposals: Formal documents (like BIPs for Bitcoin or EIPs for Ethereum) are drafted.
- Implementation: Developers write the code, and the network 'votes' by choosing whether or not to run the new software version.
Examples
Bitcoin and Ethereum primarily use off-chain governance, which is seen as more resilient to 'plutocracy' (rule by the wealthy) but can be slower to reach consensus.