Adaptive Governance for Blockchain Networks
This research investigates adaptive governance for blockchain networks within the context of legal resilience by looking at the current regulatory trends in two major jurisdictions, the European Union and the United States. The paper explores the current stance of blockchain networks and regulations, and explains why alegality of blockchain networks is no longer a justifiable argument. It also finds that the current regulatory environment is not suitable for blockchain network compliance due to their properties, presenting an existential threat and fear of 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 mechanisms. Later, the research investigates the theory of adaptive governance for the purpose of assessing its applicability to blockchain networks with the aim of helping them adapt to regulatory changes while staying decentralized. Lastly the paper makes seven recommendations to blockchain networks to consider for their governance and policies.