The exchange theory of web3 governance

Blockchains have enabled innovation in distributed economic institutions, such as money (e.g., cryptocurrencies) and markets decentralised exchanges), but also innovations governance, autonomous organisations. These generated academic interest studying web3 yet there is no general theory of governance. In this paper, we draw on the contrast between a ‘romantic view’ governance (characterised by consensus through community voting) ‘exchange from public choice an entrepreneurial process bargaining exchange voters under uncertainty). Our analysis first to argue that latter best understand dynamics web3, providing foundations for new frontier field. We apply three case studies (Curve, Lido Metagov), exploring how these projects enable pseudonymous, composable permissionless processes reveal value. approach helps illuminate emergent polycentric can generate robustness systems.