A configurational perspective on design elements and user governance engagement in blockchain platforms

Abstract

Blockchain technology offers the potential to create an open, decentralised governance structure that empowers stakeholders to participate in decentralised engagement. However, how blockchain platforms configure their design elements to establish and maintain decentralised systems with high levels of user governance engagement requires further research. This study investigates the key design elements of blockchain platforms and their ideal configurations for promoting user governance engagement. Due to the complex and interdependent nature of the design elements, we adopt a configurational perspective accompanied by a fuzzy set qualitative comparative analysis (fsQCA) to uncover complex nonlinear relationships among key conditions that are relevant to decentralised governance. Our research identifies five key design elements that facilitate distributed governance (Access to decision rights, Process visibility, Protocol automation, Incentives for developers/miners, and Incentives for other stakeholders) based on existing blockchain governance literature. We analyse 14 unique blockchain platform cases that adopted on‐chain governance. Our fsQCA results reveal three ideal types of blockchain governance configurations that are sufficient for high generative user governance engagement: Centralised incentive model, Impartial incentive model, and Automation‐driven model, whereas achieving high evaluative governance engagement requires the presence of all the design elements (Comprehensive model). Also, we found Access to decision rights and Protocol automation are necessary conditions for generative governance engagement, and Access to decision rights together with Process visibility is a combined necessary condition for evaluative governance engagement. Relevant theoretical and practical implications for platform designers as well as methodological implications for applying QCA to emerging IS phenomena are discussed.

Blockchain governance and trust: A multi-sector thematic systematic review and exploration of future research directions

“…As governments are already piloting BCT applications, further research can be carried out to highlight the practical frameworks and consensus algorithms among various ministries/departments [ 107 ]. The micro-foundations of blockchain governance, and how different dimensions of blockchain governance influence the outcome of governance, are not adequately understood [ 60 ]. Micro foundations are underlying principles, mechanisms, and processes at the individual level that contribute to the overall governance of blockchain networks.…”

“… Given the complexity of blockchain governance and its multi-faceted nature, what are the micro-foundations underlying governance mechanisms within blockchain networks, and how do different dimensions of blockchain governance interact to influence governance outcomes such as network security, scalability, decentralisation, community engagement, and adaptability to technological and regulatory changes? [ 60 ]. Judicature How does an individual enforce the ‘right to data erasure’ and ‘right to be forgotten’ if BCT is used to store data?…”

“…There are methods to evaluate the best suitable methods of governance models. Zhang et al argue that a configurational approach would benefit as it examines how various features and combinations thereof explain specific outcomes [ 60 ]. The process encourages de-agentising the governance process, emphasizing five key elements: access to decision rights, process visibility, protocol automation, incentives for developers/miners, and incentives for other stakeholders.…”