The Need for Formalized Governance

In 2010, Satoshi Nakamoto saved Bitcoin from certain death. The value overflow incident exposed the vulnerability of Bitcoin to human errors and malicious actors, as well as the lack of a formal process for dealing with such issues. About a year later, the Bitcoin Improvement Proposal (BIP) process was introduced to address these challenges. Cardano introduced the Cardano Improvement Proposal (CIP) process in 2020. However, CIPs, as well as BIPs, are only proposals that must be voted on. Let’s look into the past to see how governance was formed and what kind of controversy a vote on a protocol change can bring. We will explain why it is necessary to formalize governance.

This article was prepared by Cardanians with support from Cexplorer.

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