Formal governance structures in cryptocurrency refer to the established systems and processes that guide decision-making within a project or network. These structures define how changes to the protocol are proposed, evaluated, and implemented, ensuring that all stakeholders can participate in governance.Typically, formal governance can include mechanisms such as on-chain voting, where token holders can cast votes on proposals, or off-chain discussions in community forums. Some projects may have a dedicated team or organization responsible for suggesting and implementing changes, while others rely on decentralized input from the community.These governance structures aim to balance power and ensure that the interests of various stakeholders—like developers, investors, and users—are considered. Clear governance helps maintain transparency, fosters trust, and can prevent issues related to centralization and decision-making conflicts.Ultimately, formal governance structures play a crucial role in the sustainability and evolution of cryptocurrency projects, influencing their adaptability and future direction.