Corporate Governance In Crypto Platforms: Regulatory Vacuum Or Emerging Framework

Introduction

The blockchain networks and the associated decentralized autonomous organizations (DAOs) are frequently described with the help of democracy. The crypto currency token holder’s vote proposals are widely debated in public forums. The related governance disputes invoke the ideas of legitimacy and participation. Hence the framing leads to an assumption that the blockchain governance is primarily political in nature. However, in-depth analysis suggests that the blockchain systems may borrow some democratic procedures but the corporate governance issues more closely resemble the agency conflicts which are traditionally addressed by corporate governance. The central issue in blockchain ecosystems is not the legitimacy of coercion-as in the case of nation-states-but the alignment of incentives among voluntary participants. Evaluating blockchain governance through the lens of corporate law, hence offers more practical insight for businesses, investors, and regulators.