Now the code runs itself: On-chain and off-chain governance of Blockchain technologies

Wessel Reijers*, Iris Wuisman, Morshed Mannan, Primavera De Filippi, Christopher Wray, Vienna Rae-Looi, Angela Cubillos Vélez, Liav Orgad

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

The invention of Bitcoin in 2008 as a new type of electronic cash has arguably been one of the most radical financial innovations in the last decade. Recently, developer communities of blockchain technologies have started to turn their attention towards the issue of governance. The features of blockchain governance raise questions as to tensions that might arise between a strictly “on-chain” governance system and possible applications of “off-chain” governance. In this paper, we approach these questions by reflecting on a long-running debate in legal philosophy regarding the construction of a positivist legal order. First, we argue that on-chain governance shows striking similarities with Kelsen’s notion of a positivist legal order, characterised by Schmitt as the machine that runs itself. Second, we illustrate some of the problems that emerged from the application of on-chain governance, with particular reference to a calamity in a blockchain-based system called the DAO. Third, we reflect on Schmitt’s argument that the coalescence of private interests is a vulnerability of positivist legal systems, and accordingly posit this as an inherent vulnerability of on-chain governance of existing blockchain-based systems.

Original languageEnglish
Pages (from-to)821-831
Number of pages11
JournalTopoi
Volume40
Issue number4
Early online date17 Dec 2018
DOIs
Publication statusPublished - Sept 2021

Keywords / Materials (for Non-textual outputs)

  • Blockchain governance
  • Kelsen
  • Schmitt
  • sovereignty
  • state of exception

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