An interesting idea that has been outlined by several forward thinkers in the DeFi ecosystem, including Vitalik Buterin, is to limit governance to accounts that are actively participating in the protocol. Imagine a DeFi lending protocol that restricts its governance mechanics to addresses that have actively issued and borrowed loans, have a trading history without liquidations or have even contributed to different governance proposals. Although not bulletproof, this method can significantly limit governance attacks as voters will need to be actively involved in the protocol.
Related posts
-
Pro-crypto Legislation Could Usher in Renaissance for DeFi as TVL Rises 31%
Historically, institutions have hesitated to move on-chain due to regulatory risks. However, with bitcoin ETF AUM... -
Meta’s Mark Zuckerberg Could Teach DAOs, Like Compound, a Governance Lesson
Apathy remains a significant challenge in DAO governance, with voter participation often low, meaning a solution... -
Securitize Unveils Vault System to Revolutionize Institutional Defi Liquidity
Securitize has rolled out its S-Token Vault, utilizing ERC4626...