Blockchain Governance in Digital Assets

Abstract

The rapid expansion of digital asset ecosystems, including cryptocurrencies, decentralized finance (DeFi) platforms, and decentralized autonomous organizations (DAOs), has highlighted inherent conflicts between technological decentralization and the requirements of sound corporate governance.
On one hand blockchain-based architectures promise transparency, on the other hand, trust minimization, disintermediation, market instability, and regulatory interventions suggest persistent structural and institutional weaknesses. This doctoral thesis examines how corporate governance can be enhanced within the digital asset ecosystem, aiming to promote their long-term
sustainability, legitimacy, and systemic resilience. This will result in these assets’ long-term sustainability, legitimacy, and systemic resilience. The research employs a multi-theoretical approach to governance, constructing a robust analytical framework for blockchain-based socio-technical systems. Using a mixed-methods research methodology - comparing case studies of Ethereum and Binance Smart Chain, supplemented by survey data and quantitative analyses - the study finds that neither fully centralized nor decentralized governance approaches are adequate for effective oversight. Decentralized models promote inclusivity and transparency but encounter difficulties with coordination and enforcement challenges. On the other hand, centralized approaches offer efficiency and regulatory compliance but concentrate systematic risks.
The study advocates for hybrid governance models, combining decentralized stakeholder participation with centralized supervisory functions, thereby advancing corporate governance theory to blockchain organizations. It provides pragmatic and actionable insights for regulators and industry stakeholders, underscoring the importance of adaptive and principle-based governance frameworks. Such frameworks have the potential to integrate digital asset enterprises into the financial system while safeguarding innovation.
The study concludes that adaptive, principle-driven governance structures are vital for the successful incorporation of digital asset enterprises into the wider financial system, ensuring the preservation of innovative potential.