What Is the Role of a Decentralized Autonomous Organization (DAO) in Capturing the Governance Premium?
A DAO captures the governance premium by providing a structured, decentralized mechanism for token holders to exercise their governance rights. By managing the protocol's treasury, setting fee parameters, and directing future development, the DAO ensures that the governance rights are meaningful and impactful.
A successful, active DAO increases investor confidence in the protocol's long-term direction, thereby enhancing the governance premium.