What is “On Chain” Governance for Layer 1 protocols?

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What is “On Chain” Governance for Layer 1 protocols?

On-chain governance is a system for implementing changes to decentralized networks. As the name suggests, on-chain governance occurs on the blockchain itself. 

A critical feature of on-chain governance is that the rules for initiating changes are coded into the blockchain protocol. For a change to take place, developers must first propose it through a code update, with each node then voting on whether to accept or reject the proposal. 

On-chain governance may be defined to represent the interests of various stakeholders in decision-making in many ways.

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