# I. Introduction (Why?)

**Best Practices and Key Components of Decentralized Blockchain Governance**

Digital governance is in and of itself a core innovative product brought into existence by Web3 technology. The creation of guidelines and a knowledgebase of best practices around governance may serve as a valuable resource for Web3 communities and stakeholders.

This document aims to outline the key components and best practices in blockchain governance, at mid-to-high level, without getting too detailed about specifics which may vary from one community to the next.

This document is iterative and collaborative; it covers a non-exhaustive list of components that are important to governance; your suggestions and contributions are welcome.

## A. Good Governance as a Critical Blockchain Asset

* Good Governance increases the value of a Blockchain Ecosystem
  * Ensures Blockchain Ecosystems operate effectively, securely, and transparently.
  * Developing a culture around governance processes and community participation is important for maintaining a healthy and engaged community.
  * Improves user experience for all stakeholders
  * Allows ecosystem to iterate and evolve efficiently and effectively as markets and technologies change
* Good Governance improves security, which is critical for ensuring that the blockchain remains stable and reliable
* A failed governance process may allow faulty code or ill-thought-out ideas into the ecosystem which may potentially result in loss of funds.
* “Initiating” or "rebooting" community governance can be achieved by socializing and voting on a Signaling Proposal to approve Governance Guidelines which promote transparency, fairness, participation, and constructive culture.
* Governance Guidelines can then be referenced and used as a foundation for future governance activities