How Does Quadratic Voting Specifically Limit the Influence of Large Token Holders in DAOs?
Quadratic voting limits large holders by making the cost of additional votes non-linear. The cost for 'n' votes is proportional to n-squared.
This means a single large holder pays significantly more per vote than many small holders casting the same total number of votes. It shifts power from wealth concentration to the breadth of preference, promoting a more equitable distribution of voting power.
This mechanism encourages wider community participation.