Crypto DAOs and the Illusion of Democracy

02 May Crypto News

In many Decentralized Autonomous Organizations (DAOs), insiders such as developers and project owners hold enough voting power to influence or control major decisions, undermining the promised democracy of these platforms.
Researchers observed that governance token ownership often shifts significantly just before key votes, suggesting that insiders may strategically acquire voting power to influence decisions in their favor.
The findings raise serious questions about the transparency and accountability of DAOs, with regulators increasingly focused on identifying who truly controls these decentralized systems, especially following incidents like the Tornado Cash…