Skip to main content

How Does a DAO Govern a DeFi Derivatives Protocol?

A Decentralized Autonomous Organization (DAO) governs a DeFi protocol by allowing token holders to vote on proposals that affect the protocol's parameters, such as fee structures, margin requirements, or the addition of new markets. This mechanism decentralizes decision-making and is intended to align incentives among users and developers.

Governance tokens grant voting power in the DAO.

How Does a “DAO” (Decentralized Autonomous Organization) Influence Tokenomics?
How Does a Decentralized Governance System Vote on Adding New Collateral Types?
How Does Block Space Availability Directly Influence the Miner’s Zero-Fee Decision?
What Is a Decentralized Autonomous Organization (DAO) and How Can It Govern a Derivatives Protocol?