The ability for a blockchain network to govern and update itself, including fixing bugs, protocol changes, and so on.
Ideally, blockchain networks will have a diverse, inclusive governance that would make them be as far as possible from Human-based Trust, such that no single human or organization holds the keys over controlling the entire system.
Some of the most common forms of governance are:
- Social Governance: No specific mechanism is built into the system, and the decisions are left to be decided in offchain communication means (often a public forum). Decisions are made once a seemingly majority of stakeholders agree. This is a fuzzy and ambiguous form of governance. Ethereum is a prime example.
- Token voting: Decisions are made by a by allowing tokens holders of the said governance to vote. The voting often happens onchain. Polkadot is a prime example.
- Councils: A smaller group of people are elected to manage certain parts of the protocol. Often used in security councils for L2 Rollups. Ultimately the one that most resembles Human-based Trust.