Crypto and Governance Culture - What’s It All About?
From mobile banking to cryptocurrency, financial systems are no longer limited to traditional banks and cash.
At Queens of Money, we always discuss the importance of understanding how money works to help us make informed decisions on our budgeting or thinking about investing.
A lot is discussed about crypto, and we thought it is high time to touch on one key aspect of it. Governance.
Why? Understanding cryptocurrency is as important as understanding traditional markets and finance (regulated banks, funds, funds, stocks) even if you're not planning to dive into them or invest in them.
You may have heard of cryptocurrencies, like Bitcoin or Ethereum. But beyond digital money, there’s also something called "crypto governance", a way of making group decisions using blockchain technology.
In many traditional systems, decisions are made by a small group of people such as governments, CEOs, or elected leaders.
In the crypto world, some communities are trying something different. They use technology to allow a wider group of people, often online members, to vote on decisions. This process is part of what’s called crypto governance culture.
One form of this is called a DAO, which stands for “Decentralized Autonomous Organization.” These are online communities where decisions are made through group voting, using tokens (digital assets), instead of physical ballots.
People can suggest ideas, vote, and help shape how things are run. The rules are written into computer code and are usually visible to everyone.
But these discussions/decisions are visible to those who understand computer code or have access to tokens.
Supporters of this approach say it encourages fairness, transparency, and participation.
They believe it gives more people a chance to have a say, especially those who might not normally have access to power in traditional systems.
However, there are also concerns. Not everyone who owns tokens can vote, and sometimes those with more tokens can have more influence. The process can be technical and hard to understand for beginners.
As with any system, how well it works depends on who’s involved and how it’s managed.
Understanding concepts like crypto governance doesn’t mean you have to become a financial expert or supporter of cryptocurrency. But learning the basics, how decisions are made, how value is created, and who holds the power, can help you become more financially confident.
You must feel comfortable with how decisions are taken in the assets and in the structures/organisations you are investing your hard earned money.
Key Questions to Ask About Governance and Crypto
Who makes the key decisions?
Is governance truly decentralized, or are decisions dominated by a small group?
Who holds the power? Developers, token holders, founders, or investors?
How are decisions made?
What kind of voting system is used (e.g., 1 token = 1 vote)?
Is participation open to everyone or only to certain token holders?
Are the rules written in smart contracts, and can they be changed?
Who can participate and how easy is it to join in?
Do you need to buy tokens to vote or propose changes?
Is the process beginner-friendly, or does it require deep technical knowledge?
Is the system transparent and accountable?
Can you easily find and understand voting records, decisions, and outcomes?
Are there clear processes for handling disagreements or mistakes?
What are the risks of manipulation or centralization?
Could someone with a lot of tokens (a "whale") control the system?
Is there a risk of collusion or behind-the-scenes influence?
What happens if something goes wrong?
Is there a plan for disputes, hacks, or failed proposal?
Are there checks and balances in place?
What is the community culture like?
Are diverse voices welcomed in governance conversations?
How are conflicts handled? Openly or behind closed doors?
How does it compare to traditional systems?
What does crypto governance do better, or worse, than governments or corporations?
Are the ideals of decentralization actually being practiced?
You’ve got this.
Your Queendom.
By Cleopatra Kitti, Founder of Queens of Money - a finanical literacy platform dedicated to empowering people, particularly women, in their mindset on financial activity and personal financial management. Not as advice, but as a platform of education. For more, visit Queens of Money.