@renfred232
DAO governance can sometimes be vulnerable to “whale” control if voting power is concentrated among a few large token holders. This centralization undermines decentralization and can discourage community participation. To address this, some DAOs introduce mechanisms like quadratic voting, vote delegation, or reputation-based systems to balance influence. Projects may also implement governance token caps or multi-signature treasury management to prevent unilateral decisions. Transparency in decision-making and encouraging diverse participation are crucial for a healthy DAO. If whales dominate votes, governance risks becoming performative rather than functional, ultimately harming the project’s growth, community trust, and long-term sustainability.
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