SoK: Blockchain Governance
Aggelos Kiayias, Philip Lazos
Abstract
Blockchain systems come with a promise of decentralization that, more often than not, stumbles on a roadblock when key decisions about modifying the software codebase need to be made. In a setting where "code-is-law," modifying the code can be a controversial process, frustrating to system stakeholders, and, most crucially, highly disruptive for the underlying systems. This is attested by the fact that both of the two major cryptocurrencies, Bitcoin and Ethereum, have undergone "hard forks" that resulted in the creation of alternative systems which divided engineering teams, computational resources, and duplicated digital assets creating confusion for the wider community and opportunities for fraudulent activities. The above events, and numerous other similar ones, underscore the importance of Blockchain governance, namely the set of processes that blockchain platforms utilize in order to perform decision-making and converge to a widely accepted direction for the system to evolve. While a rich topic of study in other areas, including social choice theory and electronic voting for public office elections, governance of blockchain platforms is lacking a well established set of methods and practices that are adopted industry wide. Instead, different systems adopt approaches of a variable level of sophistication and degree of integration within the platform and its functionality. This makes the topic of blockchain governance a fertile domain for a thorough systematization that we undertake in this work.