Before the emergence of the concept of DeFi "governance coin", "blockchain governance" has always been a relatively uncommon topic, and articles and opinions related to it are rare. Most of the time, people pay more attention to the rise and fall of currency prices, changes in industry outlets, or the ups and downs of star projects.
What is called "blockchain governance"?
At present, there is no authoritative and clear definition of "blockchain governance". The editor believes that "blockchain governance" refers to the process by which participants and stakeholders in the blockchain ecology form consensus on specific issues and realize them. The core of the process is the struggle and exercise of "decision-making power".
Many of the early blockchain architects borrowed from the experience of real society. Therefore, people are accustomed to matching the governance structure of the blockchain with the political structure in the real society, such as the Western "separation of powers" system, and comparing the advantages and disadvantages of the two parties. However, once this system, based on code, with the original intention of creating trust, and the vision of decentralization started to operate, it has already got rid of the shackles of the real world.
The full English name of DeFi is Decentralized Finance, which means decentralized finance. DeFi products use public chains (such as Ethereum) as the underlying framework and smart contracts as the core mechanism, and are committed to providing open financial services that are available to everyone, cannot be tampered with, and do not require permission.
Pure financial activities have objectively enhanced the status of participants and supporters, allowing the media, KOLs, and venture capital funds to become stakeholders. Participants become key LPs (liquidity suppliers) in activities such as "liquid mining", directly verifying the product model. The media has become an industry energy that cannot be ignored, and public opinion usually has a direct impact on participants.
The widespread application of smart contracts not only improves governance transparency, but also objectively reduces the important position of the core technology. The rise of Oracle (oracles) and AMM (automated market makers) further guarantees the degree of decentralization of the project.
The continuous development of DAO has brought dawn to DeFi's "project autonomy" and made it possible for "decentralized organizations" to operate "centralized projects."