This article explores the emerging legal framework for decentralized governance in token networks. Effective decentralized governance requires the design and implementation of a holistic framework. Other components of a functioning decentralized blockchain network—including technical, operational, and economic components—are ultimately dependent on a well-designed system of decision-making rooted in principles of effective governance. Decentralized governance of a blockchain network must, above all, aim to protect and preserve the digital sovereignty and long-term independence of the network itself.

Decentralized governance is a recognized guiding principle for maturing token projects and is increasingly being stressed in budding policy frameworks, including the proposed CLARITY Act. The

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