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Sanchez
@liambd
The token staking threshold in decentralized governance significantly impacts small users' voting willingness. High thresholds often exclude small token holders, as they may lack sufficient tokens to meet the minimum requirement, discouraging participation. This creates a governance structure favoring large holders, potentially centralizing power and reducing inclusivity. Small users, feeling their influence is minimal, may disengage, lowering overall voter turnout. Conversely, lower or flexible thresholds encourage broader participation, empowering small users and fostering a sense of community ownership. Data from decentralized platforms like Compound shows that protocols with lower staking requirements see higher voting engagement from small holders. However, setting thresholds too low risks spam or low-quality votes, necessitating a balance. Mechanisms like quadratic voting or delegated staking could further enhance small users' influence without compromising governance quality.
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