# Governance Models ⎊ Area ⎊ Resource 23

---

## What is the Protocol of Governance Models?

In the context of cryptocurrency and DeFi, these dictate the onchain rules for decision-making, often involving token-weighted voting on parameters like fee structures or collateral ratios for derivative products. The robustness of the underlying consensus mechanism directly influences the perceived legitimacy of the resulting governance outcomes.

## What is the Decision of Governance Models?

The process by which proposals affecting the platform's operation, such as changes to liquidation thresholds or oracle feeds, are ratified by stakeholders forms the operational backbone. Analysis of voting participation and proposal quality is essential for assessing systemic stability.

## What is the Framework of Governance Models?

These structures range from purely onchain voting systems to hybrid models incorporating offchain signaling or multisig oversight for emergency interventions. A well-defined framework minimizes principal-agent conflicts inherent in decentralized systems.


---

## [Decentralized Finance Solvency](https://term.greeks.live/term/decentralized-finance-solvency/)

## [Zero-Knowledge Acceleration](https://term.greeks.live/term/zero-knowledge-acceleration/)

---

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---

**Original URL:** https://term.greeks.live/area/governance-models/resource/23/
