Let me repeat: any kind of government comes down to monopoly on use of violence. It does not matter if it's Henry VIII or Kim Jong Un or Democratically Elected Government of Cyberspace or Pablo Escobar. The core of any government is a monopoly on violence. If your Democratically Elected Government of Cyberspace cannot or will not use violence to enforce its rules then it's not a government.
Second: you can't eat blockchain, you can't fill your gas tank with blockchain, blockchain won't protect you from cold rain. You have to convert your cybercoin to real-world goods at some point. That means a contract "BTC 1000 for 1 loaf of bread". This contract has to be enforced off blockchain because 1 loaf of bread is not on blockchain (no, NFT is not a loaf of bread, you can't eat NFT). And you guessed it right: this contract has to be enforced with a threat of violence. That means off-blockchain government.
> There are already plenty of projects experimenting with "on-chain governance"
I bet you a $1 none of them will go anywhere. Like all those experimental applications of blockchain that IBM, Maersk, and many others played with. Hard no useful outcome, complete failure each and every time for fundamental reasons. Like a complete failure each and every time anyone tries to build a perpetuum mobile.
There is one ONE (hard 1, like in math) use case for blockchain: circumvention of regulations. Once regulations are implemented on blockchain, it would lose its one and only use case.
Second: you can't eat blockchain, you can't fill your gas tank with blockchain, blockchain won't protect you from cold rain. You have to convert your cybercoin to real-world goods at some point. That means a contract "BTC 1000 for 1 loaf of bread". This contract has to be enforced off blockchain because 1 loaf of bread is not on blockchain (no, NFT is not a loaf of bread, you can't eat NFT). And you guessed it right: this contract has to be enforced with a threat of violence. That means off-blockchain government.
> There are already plenty of projects experimenting with "on-chain governance"
I bet you a $1 none of them will go anywhere. Like all those experimental applications of blockchain that IBM, Maersk, and many others played with. Hard no useful outcome, complete failure each and every time for fundamental reasons. Like a complete failure each and every time anyone tries to build a perpetuum mobile.
There is one ONE (hard 1, like in math) use case for blockchain: circumvention of regulations. Once regulations are implemented on blockchain, it would lose its one and only use case.