Advantages of On-Chain Governance?

The benefits of on-chain governance, according to its proponents, are as follows:
It is a kind of government that is decentralized. Changes to a blockchain are not routed via a core development community that assesses the advantages and drawbacks of the technology. Instead, each node is given the opportunity to vote on the proposed modification and learn about or discuss its advantages and disadvantages. It is decentralized because collective decision-making is entrusted to the community.
Changes may be made in a shorter amount of time. In order to establish consensus, informal governance systems need time and effort from all players. On-chain governance allows stakeholders to agree on proposed modifications in a shorter amount of time. The bitcoin cash split and the Ethereum Classic fork, for example, took months to develop and deploy.
The likelihood of a hard fork is considerably decreased. Because any proposed modification requires unanimous agreement from all nodes, the likelihood of a hard fork is greatly minimized. On-chain governance provides economic incentives for nodes to participate in the voting process through the use of rewards.

According to its proponents, the advantages of on-chain governance are as follows:

  • It is a decentralized form of governance

  • It offers quicker turnaround times for changes

  • The possibility of a hard fork is reduced significantly

The informal governance process does not provide economic incentives to end-users, who utilize cryptocurrencies for daily transactions or invest in them for long periods. Instead, economic incentives rest with miners and developers. Once voting is concluded, all node operators are required to follow the decision.