A public blockchain network is considering a hybrid governance model to improve decision-making. They want to keep the efficiency of on-chain voting but also want to ensure that complex technical proposals are thoroughly reviewed before being put to a vote. Which hybrid design would best achieve this?

Have the core developers decide all technical changes without token voting

Use an off-chain technical committee to review proposals before they are submitted to on-chain voting

Allow any token holder to submit a proposal directly to an on-chain vote

Use on-chain voting only for non-technical changes and off-chain discussion for technical changes

In an on-chain governance model, how are decisions typically made?

Through informal discussions among developers on social media

Through a central authority that makes all decisions for the network

Through a legal contract signed by all network participants

Through token-weighted voting where the number of tokens held determines voting power

A global blockchain project is considering a governance proposal that would change the network's consensus algorithm. The project has users in multiple countries with conflicting regulatory requirements. The governance model is hybrid, with an off-chain foundation and on-chain voting. What is the most important step before the proposal is put to a vote?

Conduct a legal impact assessment across all relevant jurisdictions

Ask the foundation to make the decision unilaterally

Launch a marketing campaign to encourage voter participation

Proceed with the vote and address legal issues after implementation

Which statement best defines blockchain governance?

The legal framework that regulates cryptocurrency exchanges in a jurisdiction

The technical protocol that validates transactions and adds blocks to the chain

The process of making and enforcing decisions about a blockchain network's rules and evolution

The process of mining new coins and distributing them to network participants

In a public blockchain network, a proposal to increase the block size is being discussed. Developers have implemented the code, but miners are concerned about increased storage costs, and large enterprises worry about transaction throughput. Which group ultimately has the most direct influence on whether the upgrade activates on the network?

Developers, because they write the code

Enterprises, because they fund development

Miners, because they produce blocks and can signal support

Token holders, because they vote on proposals

EC-CouncilBlockchain Business Leader Certification

Domain 7Objective 1

Governance Models for Blockchain Networks BBLC Practice Questions (Page 7)

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 31–35

31application · medium
A public blockchain network is considering a hybrid governance model to improve decision-making. They want to keep the efficiency of on-chain voting but also want to ensure that complex technical proposals are thoroughly reviewed before being put to a vote. Which hybrid design would best achieve this?
Select an answer first
32foundation · easy
In an on-chain governance model, how are decisions typically made?
Select an answer first
33expert · hard
A global blockchain project is considering a governance proposal that would change the network's consensus algorithm. The project has users in multiple countries with conflicting regulatory requirements. The governance model is hybrid, with an off-chain foundation and on-chain voting. What is the most important step before the proposal is put to a vote?
Select an answer first
34foundation · easy
Which statement best defines blockchain governance?
Select an answer first
35application · medium
In a public blockchain network, a proposal to increase the block size is being discussed. Developers have implemented the code, but miners are concerned about increased storage costs, and large enterprises worry about transaction throughput. Which group ultimately has the most direct influence on whether the upgrade activates on the network?
Select an answer first

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Governance Models for Blockchain Networks BBLC Practice Questions (Page 7)

Questions 31–35

In an on-chain governance model, how are decisions typically made?

Which statement best defines blockchain governance?

Keep studying — Governance, Regulation, and Compliance