What Is the Role of “Decentralized Autonomous Organizations” (DAOs) in Preventing Token Concentration?

Decentralized Autonomous Organizations (DAOs) can play a role in preventing token concentration by implementing governance mechanisms that limit the voting power of large holders or incentivize broader distribution. For example, some DAOs use quadratic voting, where the cost of a vote increases exponentially, making it prohibitively expensive for a single entity to dominate.

They can also manage community funds to fund projects that encourage decentralization, although DAOs themselves are often susceptible to whale concentration.