How Does Token-Based Voting Differ from Traditional Corporate Shareholder Voting?

Token-based voting in a DAO differs from traditional corporate shareholder voting in several key ways. Shareholder voting is legally binding, operates under strict corporate law, and is generally based on one-share-one-vote.

Token voting is often non-binding on the core developers, operates through code, and is typically weighted by token count (one-token-one-vote), though complex schemes exist. Furthermore, corporate voting is restricted to legal entities and often has strict KYC, while token voting is pseudonymous and permissionless, presenting major differences in accountability and transparency.