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This policy brief examines the global evolution of decentralized governance models enabled by blockchain technology, focusing on how these systems can enhance transparency, participation, and accountability in managing digital commons. Drawing on case studies from

major blockchain networks—including Bitcoin, Ethereum, Tezos, Cardano, Algorand, and the Internet Computer—the brief analyzes how decentralized autonomous organizations (DAOs) and on-chain governance mechanisms are shaping new models of collective decision-making.

The analysis highlights key challenges such as limited participation, lack of expertise, conflict of interest, and resource management inefficiencies, alongside technological innovations that address these issues through mechanisms like parametric governance, delegated voting, incentive structures, and multi-layered oversight. The brief also explores emerging regulatory frameworks, including the U.S. Financial Innovation and Technology Act, and considers the growing intersection between blockchain governance and artificial intelligence.

The brief concludes with policy recommendations for leveraging decentralized governance principles within the public sector, including piloting blockchain-based participatory budgeting, adopting algorithmic audit trails, promoting polycentric governance structures, and establishing regulatory sandboxes for experimentation. Collectively, these insights offer practical pathways for building more transparent, resilient, and inclusive governance systems in the digital age.