Voting Power
Governance Layer • Validators • Protocol Control
token-weighted decision influence
Voting Power refers to the weight or influence an individual or entity has when participating in governance decisions within a blockchain, DAO, or DeFi protocol. Voting power is typically determined by factors such as the amount of governance tokens held, duration of staking, or other protocol-specific rules. It is used to cast votes on proposals, protocol upgrades, funding allocations, and other collective decisions, directly impacting the direction and development of decentralized systems.
Use Case: Someone holding a larger amount of a protocol’s governance tokens can have more voting power, giving them greater influence over which proposals are accepted or rejected in a DAO or DeFi platform.
Key Concepts:
- Governance Token — Tokens that represent voting rights within a decentralized protocol.
- Staking — Locking tokens to secure a network and often gain additional voting power.
- DAO — A decentralized autonomous organization governed by code and token-weighted voting.
- Proposal — A formal submission to enact change within a protocol or DAO.
- Protocol Upgrade — Improvements or changes to a blockchain system often requiring community approval.
Summary: Voting power is the mechanism that translates token ownership or stake into decision-making influence in decentralized governance. It enables stakeholders to actively shape the future of protocols and DAOs based on their level of involvement.