Currently, there are different forms of governance in this world. These are namely Constitutional, Monarchy, Oligarchy, and Authoritarian. The Totalitarian form of government ended after the fall of Nazi Germany. It is very much debatable that which form of government is best and which is worst. But no governance is indeed perfect. Every type of governance has positive points and negative points and it totally depends on leaders who are running a nation.
Constitutional governance - America, Japan, Korea, India, France, etc.
Monarchy governance - Bhutan, Saudi Arabia, etc.
Oligarchy governance - Russia, China, etc.
Authoritarian governance - Cuba.
Taking Constitutional Monarchy as a base that is predominant in the majority of nations. In this type of governance, it is said that power is in the hand of people as people elect their leaders. But it is not completely true. In the end, power is in the hand of an elected person and you can only replace him after his tenure. Plus as the government changes its policies too. Let us take the example of the Trump Administration, they supported Saudi Arabia, exited the Paris agreement, and so on. But when Biden Administration came into power they reversed it. So After 4 years the policies of one government changed by another government and these changes make a huge impact on the common people.
Governance By crypto technology:-
Just like in crypto platforms the power is in the hand of the peoples why don't the governance of the nation should be by this principle. Instead of having power based on the Staked tokens, the only difference would be that power should be equally divided among its citizens. This will make citizens' involvement in the development of a nation more proactive which we do not see in Constitutional governance. Though Judiciary should be kept aside from this, the verdicts could be changed by the citizen's emotions. This would give the chance to every citizen to give his voice in the decisions rather than having the voice of an elected person.
Though it is just a fantasy as the ruling elites won't be happy with it. Plus there is always a risk factor in the system totally depending on the internet. Well, but it is a good concept that could work well for an island nation.