What Prevents a Few Large Holders from Controlling a Project’s Governance?
Decentralized Autonomous Organizations (DAOs) employ various mechanisms to mitigate whale control. These include quadratic voting, where the cost of votes increases quadratically, making it expensive for single entities to dominate.
Time-locked voting and delegation systems also encourage broader participation and discourage sudden hostile takeovers. Some projects use a split between token holders and active delegates for proposal implementation.
This structure promotes a balance of power.