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Adams
@willowfs
The governance participation in DAOs is strongly correlated with the community's economic incentive structure. Well-designed incentives, such as token rewards for voting or staking, can significantly boost engagement by aligning individual interests with collective goals. Data from DAOs like MakerDAO shows that higher rewards often lead to increased voter turnout. However, over-reliance on economic incentives may attract short-term opportunists, potentially undermining long-term commitment. Non-economic factors, like community trust and shared vision, also play a role but are less dominant. Effective governance requires balancing economic motivators with intrinsic community values to sustain active participation.
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