Adaptive Governance for Blockchain Networks

Abstract

The research investigates adaptive governance for blockchain networks within the context of legal resilience by looking at the current regulatory trend in two major jurisdictions, the European Union and the United States of America. The paper sets the current stands of blockchain networks and regulations, and explains why alegality of blockchain networks is no longer a justifiable argument while finding that the current regulatory environment is not suitable for blockchain networks to comply with due to their properties, and that it creates an existential threat and fear for them of facing legal claims which may lead to full banning, criminal charges or a loss of user base. In order to address the threat, this research suggests that blockchain networks should develop legal resilience within their governance mechanism. Later, the research investigates the theory of adaptive governance for the purpose of assessing its applicability to blockchain networks in order to make them adaptable for regulatory changes while allowing them to stay decentralized. Lastly the paper makes seven recommendations to blockchain networks to consider for their governance and policies.

Keywords: blockchain networks, adaptive governance, legal resilience, blockchain governance, regulation, constitution, complex adaptive systems, ecosystems, legal systems, decentralized autonomous organizations, legal theory