# kaal:claim:3808873-033

**Claim.** Decentralized networks depend on dynamic governance because evolving blockchain protocols require updates, and the practice of hardforking that remained prevalent in the early 2020s created significant economic loss for such blockchains.

**Type.** mechanism  **Support.** argued

**Holds when.**

- blockchain protocols requiring upgrades in the early 2020s

**Source quote.**

> As blockchains protocols evolve in a given market, they require updates. The practice of hardforking, that was still prevalent in the early 2020s, created significant economic loss for such blockchains.

**From.** Wulf A. Kaal, *Decentralization Neutralizers* (2021), XI. Lack of Decentralized Governance Systems, page 29

**Cite as.** Wulf A. Kaal, Decentralization Neutralizers (2021). SSRN: https://ssrn.com/abstract=3808873

**Verify.** sha256 of source PDF `f11493915e6b8c266d421510b5546816e33defb5650aac9d09b20d78549da727` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Decentralization%20Neutralizers.pdf

**Failure mode.** Hardfork Upgrade Cost  (family: transition-and-migration-risk)

**Topics.** blockchain, governance-design, consensus-and-security, economics

**Keywords.** blockchain-governance, hardfork, protocol-upgrade, economic-loss

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3441904-006

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.