@adonistracy

Governance structures and contract permissions are critical risk factors. Features such as upgradeable contracts, admin keys, or privileged roles may introduce abuse potential. For example, a small team retaining unilateral control undermines decentralization claims. Evaluating whether protocols use time locks, multi-sig controls, or immutable contracts is essential. History shows that weak governance often leads to rug pulls or hostile forks. Investors should demand disclosure of governance mechanisms and verify them on-chain. Strong checks and balances increase confidence, while excessive centralization deserves valuation discounts to account for governance risk.

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