How Does Fractional Ownership through Tokens Affect Corporate Governance?

Fractional ownership can democratize corporate governance by allowing a broader base of token holders to participate in voting on company decisions. This is often implemented through a Decentralized Autonomous Organization (DAO) structure.

However, it can also lead to fragmented decision-making and the risk of 'voter apathy' or 'whale' control. The company must design the token's governance rights carefully to balance broad participation with efficient management.