A Galaxy Digital report reveals Ethereum’s decentralized governance avoids direct on-chain voting, detailing key stakeholder roles and transparency challenges……is steered by off-chain voting rather than on-chain Ether (ETH) holder voting.

Speaking with Cointelegraph on the risks of not having direct on-chain voting by ETH holders, Kim said:

“The less Ethereum as a technology needs to rely on governance for value and sustainability, the better. The more Ethereum can ossify parts of its codebase, the less the network will be at risk of regulatory capture and centralization. The risks of Ethereum being governed by off-chain forums and processes are not unlike the risks that exist even with on-chain forms of governance.”

According to the report, the groups collaborating on the off-chain processes include client teams, validator node operators, the Ethereum Foundation (EF) and decentralized application (DApp) developers.”



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