Ethereum
Who governs Ethereum? Galaxy Report Reveals All — TradingView News
Galaxy Digital has released a report showing that Ethereum’s decentralized governance is driven by off-chain voting rather than on-chain Ether holder voting.
Christine Kim, vice president of Galaxy Digital’s research team, released the report on June 3. It reveals the multiple stakeholders who hold the keys to Ethereum’s governance.
According to the report, groups collaborating on off-chain processes include client teams, validator node operators, the Ethereum Foundation (EF), and decentralized application (DApp) developers.
Cointelegraph reached out to Galaxy Digital for comment but did not receive a response via publication.
Customer teams and validator node operators
According to the report, customer teams play a central role in decision-making, proposals, discussions, and implementation of changes through Ethereum Improvement Proposals (EIPs).
“Client teams create and maintain the software necessary to run and connect to the Ethereum network.”
Validator node operators were also highlighted by the report as they have the “agency to implement or reject code changes” made to the Ethereum network – essentially voting in choosing which version of software to run.
Although the FE’s direct influence has diminished over time, it still supports Ethereum’s development efforts as its “first and foremost project.” […] non-profit organisation.
DApp developers, forums and communities
Kim’s report also revealed that DApp developers influence certain features and upgrades based on user needs.
“DApp developers are the primary users of Ethereum, interacting with the Ethereum codebase to deploy smart contract code.”
According to the report, discussions on off-chain governance are also being conducted in all forums, making it easier to build consensus among stakeholders.
“Governance discussions take place in several forums: Ethereum All Core Developers (ACD) calls, ETHMagicians, Ethresear.ch, Discord and GitHub.”
Related: SEC Ethereum ETF decision unlikely driven by politics: Bernstein
Off-chain or on-chain?
The report also highlights the reasoning behind Ethereum’s preference for off-chain governance over on-chain voting, due to the risk of a large number of Ether. ETHUSD holders exercising greater influence.
“No decisions are voted on by ETH holders through on-chain proposals or decentralized autonomous organizations (DAOs).”
The off-chain approach prevents centralization and maintains nuanced decision-making despite being “difficult to audit and objectively evaluate.”