The invention of Bitcoin in 2008 as a new type of electronic cash has arguably been one of the most radical financial innovations in the last decade. Recently, developer communities of blockchain technologies have started to turn their attention towards the issue of governance. The features of blockchain governance raise questions as to tensions that might arise between a strictly “on-chain” governance system and possible applications of “off-chain” governance. In this paper, we approach these questions by reflecting on a long-running (...) debate in legal philosophy regarding the construction of a positivist legal order. First, we argue that on-chain governance shows striking similarities with Kelsen’s notion of a positivist legal order, characterised by Schmitt as the machine that runs itself. Second, we illustrate some of the problems that emerged from the application of on-chain governance, with particular reference to a calamity in a blockchain-based system called the DAO. Third, we reflect on Schmitt’s argument that the coalescence of private interests is a vulnerability of positivist legal systems, and accordingly posit this as an inherent vulnerability of on-chain governance of existing blockchain-based systems. (shrink)

The design of democratic institutions includes a variety of barriers to protect against the tyranny of the majority, including international human rights, cultural minority rights, and multiculturalism. In the twenty-first century, majorities have re-asserted themselves, sometimes reasonably, referring to social cohesion and national identity, at other times in the form of populist movements challenging core foundations of liberal democracy. This volume intervenes in this debate by examining the legitimacy of conflicting majority and minority claims. Are majorities a legal concept, holding (...) rights and subject to limitations? How can we define a sense of nationhood that brings groups together rather than tears them apart? In this volume, world-leading experts are brought together for the first time to debate the rights of both majorities and minorities. The outcome is a fascinating exchange on one of the greatest challenges facing liberal democracies today. (shrink)