Ethereum Governance More Driven by Off-Chain Voting than On-Chain, Reveals Galaxy Digital Report
Summary:
Galaxy Digital's new report, led by Christine Kim, indicates that Ethereum's decentralized governance is primarily driven by off-chain voting instead of on-chain Ether holder voting. Key stakeholders in Ethereum's governance landscape include client teams, validator node operators, the Ethereum Foundation, and DApp developers, according to the research. The report highlights the significance of off-chain governance in preventing centralization and maintaining nuanced decision-making, despite its auditing challenges.
Galaxy Digital has published a study indicating that Ethereum's decentralized governance is more reliant on off-chain decision-making than on-chain voting by Ether holders. The research, disclosed on June 3rd by Christine Kim, the company's Vice President of Research, identifies various key role players in Ethereum's governance process. These include client teams, individuals running validator nodes, the Ethereum Foundation (EF), and developers of decentralized applications (DApps).
Despite requests for comments, Galaxy Digital had not responded by the time the news was made public. The research underscores the crucial role of the client teams in proposing, deliberating, and executing alterations via Ethereum Improvement Proposals. These teams are responsible for creating and sustaining the software necessary for interfacing with the Ethereum network.
The report also pointed out that validator node operators have the authority to back or reject alterations made to the Ethereum network by choosing the software version they employ. Though the EF's direct input has diminished over time, it continues to back the technological advancements of Ethereum as its primary non-profit organization.
The study further unveiled that DApp developers sway certain functionalities and advancements on the platform based on user requirements. As the main users of Ethereum, DApp developers work directly with the Ethereum codebase to implement smart contract coding. Additionally, governance discussions occur across several online forums, assisting in consensus-building among stakeholders.
The research underscores Ethereum's inclination towards off-chain governance over on-chain voting due to the potential risk of larger Ether holders gaining disproportionate influence. Unlike on-chain proposals or decentralized autonomous organizations, no decisions are voted on by Ether holders. According to the report, this approach helps avoid centralization and upholds nuanced decision-making, despite being challenging to audit and objectively analyze.
Published At
6/4/2024 4:35:38 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.