The decentralisation of authority and automated trust are the main reasons blockchain receives widespread praise. Token-based governance systems tend to maintain centralised control because early adopters and institutional stakeholders maintain most of the influence. Blockchain governance presents itself as an ethical and institutional problem instead of a technical issue. The paper uses deliberative democracy and democratic innovation theory to demonstrate that decentralised systems need to establish legitimacy through inclusive processes that combine reason and participation. The analysis evaluates Proof-of-Stake and DAOs as dominant governance models because they contain structural barriers and procedural weaknesses. The paper introduces design interventions such as sortition and quadratic voting, participatory panels and modular deliberation layers as potential solutions to embed democratic legitimacy into blockchain infrastructure. Blockchain technology enables the creation of new institutional frameworks which base their operations on democratic principles. The paper establishes that future governance needs to combine contestation and collective reasoning with consensus and coordination.
Motea et al. (Mon,) studied this question.