How Does the Concentration of Token Ownership Affect the Perceived Value of Governance Rights?

High concentration of token ownership, where a small number of "whales" control a majority of the voting power, significantly diminishes the perceived value of governance rights for the average investor. The governance power becomes centralized, making the average vote effectively meaningless.

This reduces the "governance premium" because the ability to influence the protocol is concentrated, undermining the core principle of decentralized governance.