TECHNICAL ISO/TS SPECIFICATION 23635 First edition 2022-02 Blockchain and distributed ledger technologies Guidelines for governance Reference number ISO/TS23635:2022(E) ISO @ ISO 2022 IS0/TS23635:2022(E) COPYRIGHTPROTECTEDDOCUMENT @ISO2022 All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may be reproduced or utilized otherwise in anyform or by any means, electronic or mechanical, including photocopying,or posting on the internet or an intranet, without prior written permission. Permission can be requested from either IO at the address below or Iso's member body in the country of the requester. ISO copyright office CP 401 : Ch.de Blandonnet 8 CH-1214 Vernier, Geneva Phone: +41 22 749 01 11 Email: [email protected] Website: www.iso.org Published in Switzerland ii IS02022-Allrightsreserved IS0/TS23635:2022(E) Contents Page Foreword ..V Introduction. .. vi 1 Scope. 2 Normative references 3 Terms and definitions 4 Governance principles for DLT systems ..1 4.1 Overview .1 4.2 .2 Principles.. 4.2.1 Principle 1: Define identifiers of entities involved. 22 4.2.2 Principle2:Enabledecentralizeddecision-making 22222 4.2.3 Principle3:Ensureexplicitaccountability 4.2.4 Principle 4: Support transparency and openness. 4.2.5 Principle5:Align incentive mechanisms with systemobjectives 4.2.6 Principle6:Provideperformanceand scalability. 4.2.7 Principle 7: Make risk-based decisions and address compliance obligations 4.2.8 Principle 8: Ensure security and privacy. 33 4.2.9 Principle 9: Consider interoperability requirements 5 GovernanceframeworkforDLT systems. 3 5.1 3 Overview 5.2 .3 Comparison with other governanceframeworks 5.3 SpecificgovernanceconsiderationsforDLT systems 4 .1 5.4 Decision rights and decision-making. 5.5 Accountability .7 5.6 Incentives andincentivemechanisms. .8 6 Governance of different types of DLT systems 6.1 Types of DLT systems .9 6.2 Governance inpermissioned systems. ..12 ..12 6.3 Governanceinpermissionlesspublicsystems 7 Governance throughout a DLT system's lifecycle and contexts .13 7.1 GovernancethroughoutaDLTsystem'slifecycle 7.1.1 ..13 General 7.1.2 Governance in the Establish stage .. 14 7.1.3 Governance in the Operate stage .. 14 7.1.4 Governance in the Terminate stage .15 7.2 GovernanceintheDLTsystems contexts ..15 7.2.1 Overview oftheDLTgovernancecontexts .15 7.2.2 Data context.. ..15 7.2.3 Protocol context. .16 7.2.4 Application context. .. 16 7.2.5 Institutional context 16 8 Roles in the governance framework ..16 9 Governance instruments ..19 9.1 ..19 General On-ledger and off-ledger governance instruments .20 9.2 9.2.1 General .20 9.2.2 On-ledgergovernanceinstruments. .21 9.2.3 Off-ledger governance instruments .21 9.3 Considerations in implementing instruments. 21 9.3.1 .21 Adaptability 9.3.2 Risk. 22 9.3.3 Privacy. .23 iii IS0 2022-Allrightsreserved