Definition
On-chain governance uses blockchain mechanisms for stages such as proposal submission, voting or execution. The resulting transactions provide a verifiable record, and contracts can enforce conditions for approved actions. A system may still combine on-chain stages with off-chain debate and coordination.
How It Works
A governance contract can determine eligible voting power, count votes and queue an approved action. Timelocks may introduce a delay before execution, while delegates can represent other participants where supported. Some systems execute changes automatically under defined conditions; others require an authorized transaction to trigger execution.
Key Considerations
Recording votes publicly does not guarantee broad participation or prevent concentrated control. Borrowed voting power, malicious proposals and contract flaws can create risks depending on the design. Emergency administrators or veto rights may also limit what a vote can achieve. Governance transactions can cost fees and disclose voting behavior. Readers should identify exactly which stages occur on-chain and which remain dependent on human operators rather than assuming the entire organization is automated.