There are generally two views on Governance:

The decision function view of governance treats governance as function where the inputs are the wishes of various legitimate stakeholders and the output is the decision:

The coordination model of governance sees governance exists in layers: the bottom layer is the laws of physics themselves, which is the ultimate decision layer; the second layer is coordination institutions, which create focal points around how and when act in order to better coordinate behavior.

by Vitalik Buterin