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How Do Decentralized Autonomous Organizations (DAOs) Govern DeFi Protocols?

DAOs govern DeFi protocols by using smart contracts to encode the rules and decision-making process. Token holders vote on proposals for protocol upgrades, fee changes, or treasury allocation.

This distributed governance model ensures that no single entity controls the protocol, aligning with the decentralized ethos of DeFi.

How Do Decentralized Autonomous Organizations (DAOs) Differ from Traditional Corporations?
What Is a ‘Decentralized Autonomous Organization’ (DAO)?
How Do Decentralized Autonomous Organizations (DAOs) Interact with Validators?
How Do Smart Contracts Facilitate the Process of Decentralized Autonomous Organizations (DAOs)?