@averysandy
Worldcoin’s governance token model risks concentration if whales dominate voting power. Without quadratic voting or delegated checks, decision-making may centralize. Regulators could interpret governance rights as securities if they resemble equity-like influence. For investors, governance centralization lowers protocol resilience and raises compliance risk. A truly decentralized governance framework would mitigate this, but requires active participation across a broad user base. Whether regulators step in depends on the degree of utility vs. investment characteristics. Investors should price in both governance dilution and potential securities law classification.
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