Equity-based voting refers to a system where voting power is distributed based on the amount of a specific asset held by individuals. In this case, it usually involves tokens or coins that represent a stake in a project. The more tokens a person owns, the more influence they have in decision-making processes related to the project, such as governance proposals or funding allocations.This method aligns incentives, as those with a larger investment in the project are more likely to consider its long-term success. It can help ensure that decisions reflect the interests of those deeply invested in the project’s future.However, equity-based voting can also lead to centralization, where a small number of holders control the majority of votes. To address this concern, some platforms introduce mechanisms like vesting schedules or weighted voting to balance influence among participants. Overall, equity-based voting aims to create a participatory environment while balancing the power of large stakeholders with the interests of the broader community.