How Do Decentralized Autonomous Organizations (DAOs) Govern Stablecoin Protocols?
DAOs govern stablecoin protocols by allowing token holders to vote on critical parameters. These parameters include stability fees, collateral types, liquidation ratios, and protocol upgrades.
Token holders propose changes, and the community votes using their governance tokens. This structure aims to decentralize control and reduce single points of failure, though voting power often correlates with token ownership.