It refers to the structure that every user or participant in Blockchain agrees to follow. It lays down mechanisms for Blockchain to adapt and stay relevant with changing times and requirements. Core developers, Node holders and Token holders are responsible for governance, including Off-chain governance and On-chain governance.

Governance may also be spoken in the context of consortium formation in a federated blockchain deployment. Such a governance is the framework adhered to by the lead participant of a permissioned blockchain network. The governance framework helps in providing business rules, guidance and contractual conditions amongst consensus forming organizations.