A consortium of banks is building a permissioned blockchain for cross-border payments. They need to comply with a regulator that requires a clear legal entity accountable for protocol changes. They also want to allow token holders to vote on parameter changes, such as transaction fees. Which governance model best satisfies both requirements?

Decentralized autonomous organization (DAO) with no legal wrapper

Pure on-chain governance with token voting

Hybrid governance with a foundation that ratifies on-chain token votes

Off-chain governance through a foundation with final authority

A blockchain project wants to implement a governance model that allows for fast technical decisions but also ensures that major strategic changes are carefully considered by a diverse group of stakeholders. Which model best fits this requirement?

A single leader who makes all decisions

On-chain governance for all decisions, including strategic changes

Off-chain governance for all decisions, including technical ones

Hybrid governance with on-chain voting for technical parameters and an off-chain council for strategic decisions

In token-weighted voting, how is voting power determined?

Each participant has one vote regardless of token holdings

Voting power is proportional to the number of tokens held

Voting power is determined by the number of transactions a user has made

Voting power is based on the duration of token ownership

A developer community is debating a controversial upgrade to a public blockchain. The core development team has proposed a change, but a group of miners and large enterprises oppose it. The network has no formal on-chain voting mechanism. Which off-chain governance process is most appropriate to resolve this conflict?

Hold a public forum discussion and then have the core team make a final decision

Ask the largest enterprise to decide based on its business needs

Convene a governance council with representatives from developers, miners, enterprises, and users

Let the miners signal their preference through a hash-power vote

Which of the following is a typical off-chain governance body in blockchain networks?

A mining pool that validates transactions

A foundation or council that oversees protocol development

A smart contract that automatically executes proposals

A token holder who votes directly on-chain

EC-CouncilBlockchain Business Leader Certification

Domain 7Objective 1

Governance Models for Blockchain Networks BBLC Practice Questions (Page 3)

Part of the Governance, Regulation, and Compliance domain, which makes up ~8% of our current practice bank.

49questions here

10free pages

9concepts

9 Concepts in This Objective

Blockchain Governance Fundamentals
On-Chain Governance Models
Off-Chain Governance Models
Hybrid Governance Models
Stakeholder Roles and Responsibilities
Decision-Making and Voting Mechanisms
Governance Security and Attack Vectors
Regulatory and Compliance Considerations
Case Studies of Governance in Practice

Questions 11–15

11expert · hard
A consortium of banks is building a permissioned blockchain for cross-border payments. They need to comply with a regulator that requires a clear legal entity accountable for protocol changes. They also want to allow token holders to vote on parameter changes, such as transaction fees. Which governance model best satisfies both requirements?
Select an answer first
12application · medium
A blockchain project wants to implement a governance model that allows for fast technical decisions but also ensures that major strategic changes are carefully considered by a diverse group of stakeholders. Which model best fits this requirement?
Select an answer first
13foundation · easy
In token-weighted voting, how is voting power determined?
Select an answer first
14application · medium
A developer community is debating a controversial upgrade to a public blockchain. The core development team has proposed a change, but a group of miners and large enterprises oppose it. The network has no formal on-chain voting mechanism. Which off-chain governance process is most appropriate to resolve this conflict?
Select an answer first
15foundation · easy
Which of the following is a typical off-chain governance body in blockchain networks?
Select an answer first

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Governance Models for Blockchain Networks BBLC Practice Questions (Page 3)

Questions 11–15

A blockchain project wants to implement a governance model that allows for fast technical decisions but also ensures that major strategic changes are carefully considered by a diverse group of stakeholders. Which model best fits this requirement?

In token-weighted voting, how is voting power determined?

Which of the following is a typical off-chain governance body in blockchain networks?

Keep studying — Governance, Regulation, and Compliance