Non-Monocentricity Threshold for Assessing Polycentricity on the Blockchain

Characteristics

Blockchain Technology and Polycentric Governance

"Because polycentricity exists on a spectrum, rather than labeling blockchain systems as endogenously and exogenously polycentric, it is better to test whether they meet a minimum criteria to label them non-monocentric. This exercise involves assessing attributes and indicators. Attributes represent broader conceptual understandings, while indicators provide empirical means to operationalize these attributes.

As we briefed in the introduction, a system is considered non-monocentric if it fulfills the following criteria:

• Multiple Decision-Making Centers: The system must have more than one center where decisions are made independently.

Active Decision-Making: The decision-making centers must actively exercise or implement different opinions and preferences. Autonomy from Outsiders: The decision-making centers need to be able to make operational decisions autonomously from the higher level or without direct influence from external entities, including those that might enforce rules.

• Unified Rule Set: Despite the autonomy of various centers, there should be a coherent and overarching set of rules that applies across the entire system.

• Rule Set Utility and Transparency: The rules of the overarching rule set need to be deemed useful by the agents subject to them, and the repercussions of non-compliance should be clear and understandable.

• Spontaneous Social Order: The system should exhibit a social order that emerges spontaneously through coordination or competition among the various decision-making centers (Aligica & Tarko 2012, p. 255-256)."