How Can an Investor Quantify the Potential Financial Impact of a Successful Governance Proposal?

An investor can quantify the impact by performing a financial projection of the proposal's effect on key metrics, such as cash flows, fee structure, or token supply. For example, a proposal to increase trading fees can be modeled in a DCF analysis to estimate the change in future cash flows and, thus, the token's intrinsic value.

This requires scenario analysis, comparing the protocol's valuation with and without the proposed change.