Chainalysis: There is a High Degree of Concentration of Ownership of DAO Tokens

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Analysts of Chainalysis have come to the conclusions that in the ten largest DAOs in the industry, 90% of the votes come from less than 1% of governance token holders.

The company experts have emphasized that such results refute the positioning of the DAO as a way to decentralize power.

The largest token holders are able to join forces and vote against the remaining 99% of holders. Such a distribution may also influence the opinion of minority shareholders about their role in the development of the project, experts emphasized.

A similar picture emerged with regard to the submission of proposals to the vote of the community. These criteria are met at best by every thousandth owner, at worst – by every ten thousandth. At the same time, one of 30,000 or even 10,000 holders has enough tokens to gain the vote necessary to approve the proposal.

Excessive concentration of voting rights in the DAO can lead to decisions that are contrary to the principles of decentralization on which Web3 is built.