Beyond Voting, What Other Mechanisms Are Used to Achieve Consensus in Decentralized Finance (DeFi)?

Consensus in DeFi extends beyond simple token voting to include various mechanisms. Proof-of-Stake (PoS) is a consensus algorithm where validators lock up (stake) tokens to secure the network and validate transactions, inherently aligning incentives.

Another is the use of prediction markets, where token holders bet on the outcome of a proposal, using market forces to signal optimal decisions (futarchy). Furthermore, liquid democracy, or delegation, allows token holders to delegate their voting power to trusted representatives, improving participation and informed decision-making.