What Governance Models Are Most Effective for a Consortium Blockchain Managing Syndicated Loans?

Effective governance models for a consortium blockchain in syndicated loans typically involve a multi-stakeholder approach where all participating banks have a say in the network's rules and operations. A common model is a federated structure where voting rights are proportional to a member's stake or transaction volume.

This ensures that the interests of all parties are represented. Legal frameworks and clear policies for onboarding new members, dispute resolution, and protocol upgrades are crucial for the consortium's long-term stability and success.