The efficiency of DAOs in on-chain governance is indeed limited by declining member participation. Low engagement reduces decision-making speed and quality, as fewer votes lead to less representative outcomes. Apathy or information overload can cause members to disengage, stalling proposals and weakening decentralization. Data from platforms like Aragon shows that DAOs with low voter turnout often face delays in executing critical decisions, impacting operational efficiency. Solutions like delegated voting or incentives for participation can mitigate this, but they risk introducing centralization or manipulation. Balancing accessibility, education, and motivation is key to sustaining active governance.