GOVERNANCE of a CRYPTOCURRENCY

#ETHBreaksATH #FOMCWatch #GobernanzaCripto

The governance of a cryptocurrency is the set of rules, processes, and mechanisms that enable decisions about the protocol, changes, and direction of the project.

It includes who has decision-making power, how improvements are proposed and approved, and how contributions and disputes are managed.

AMONG the KEY POINTS HIGHLIGHTED:

1-. DECISION-MAKING MECHANISM: it can be centralized (a team or company decides) or decentralized (the community participates through voting or token-based voting).

2-. IMPROVEMENT PROPOSALS: formal ways to propose changes (for example, “improvement proposals” or governance through voting by token holders).

3-. VOTES and PARTICIPATION: who can vote (token holders, stakers, nodes) and how votes are measured (proportional to the stake, per user, etc.).

4-. ON-CHAIN vs OFF-CHAIN GOVERNANCE: in on-chain, voting and changes are executed automatically on the chain; in off-chain, decisions are discussed off the chain and then implemented.

5-. PROTOCOL GOVERNANCE: decisions about updates, consensus, system parameters (gas, rewards, limits), handling of forks, and security.

6-. ECONOMIC GOVERNANCE: distribution of incentives, distribution of rewards, financing of development, and reserve funds.

7-. TRANSPARENCY and GOVERNANCE: clarity of rules, audits, execution of voting, and record of decisions.