Many people in the space believe that capital formation is the next killer app of the blockchain and that Security Token Offerings will soon see similar levels of enthusiasm exhibited in ICO markets. We have noticed that Europe has been particularly active in building the necessary regulatory infrastructure.
Getting governance right is one of the biggest challenges to overcome in order to ensure wide adoption of decentralised blockchain protocols. It is important because good governance models are crucial in blockchain protocols’ ability to adapt to changing environments and preserve legitimacy of the decisions made within their ecosystems. Governance describes how decisions are made, how they are legitimised and what are the rights of the participants in the ecosystem. It is in many cases the only way in which blockchain protocols can update themselves. In order to analyse different governance models, we need to look at purposes governance models serve within an ecosystem, components the particular governance models and network actors within the ecosystem.