Governance Minimization — Fred Ehrsam

As mentioned at the beginning of the essay, protocol tokens are financially valuable in large part because of the "threat of the fee." Taking this idea to its extreme, a token’s governance power is powerful because it gives you the ability to conserve the vibes. As a builder on the protocol, you hold to help ensure that you can’t get deplatformed. ... See more

---------CONCLUSION DeFi's decentralized governance allows stakeholders to influence protocol development. Decentralized governance with DAOs can replace traditional firms' transaction costs, allowing crypto projects to welcome more diverse ideas and beliefs. To achieve these benefits, operational efficiency does not have to be sacrificed. Incorpor... See more

Governance tokens represent percentage ownership over voting rights. It’s difficult for most community members to keep up with the latest developments for specific protocols, so most protocols allow token holders to delegate their votes to trusted representatives.