Weighted Governance

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Weighted governance refers to a system where decision-making power within a network is distributed based on certain factors, such as the amount of tokens held by participants. This model aims to align the interests of stakeholders with the project’s objectives.In weighted governance, individuals with more tokens typically have a larger influence over proposals and decisions, such as protocol upgrades or funding allocations. This structure can foster engagement from major stakeholders, incentivizing them to act in the network’s best interests.However, this approach can also lead to centralization, where a small group of token holders holds disproportionate control. Critics argue that this may undermine democratic participation and reduce diversity of thought in decision-making processes. To address these concerns, some projects implement mechanisms like voting power caps or quadratic voting, which aim to balance influence among participants. Overall, weighted governance is a key aspect for many blockchain projects, shaping how they evolve and respond to the needs of their communities.

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