Chainalysis finds high concentration of DAO token ownership

Among the ten largest ДАО in the industry, 90% of votes are held by fewer than 1% of holders of токенов управления. Analysts at Chainalysis arrived at these conclusions.

1/ Let’s talk about #DAOs.

In this thread, we breakdown:
👉How they work
👉Why ownership is surprisingly concentrated
👉Where DAOs are the most common and well-fundedhttps://t.co/2h0qWbYTNu

— Chainalysis (@chainalysis) June 27, 2022

Experts stressed that such findings undermine the portrayal of DAOs as a means of decentralising power.

The largest token holders can coordinate their efforts and vote against the remaining 99% of holders. Such a distribution can also influence minority holders’ views on their role in the project’s development, the analysts noted.

A similar picture emerges with regard to proposals put to a community vote. By these criteria, at best one in a thousand holders, at worst one in ten thousand. Yet one in 30,000 or even 10,000 holders has enough tokens to muster the votes needed to approve a proposal.

Excessive concentration of voting power in a DAO could lead to decisions contrary to the decentralisation principles on which Web3 is built.

As an example, analysts cited the situation with the crypto-lending protocol Solend. The project’s community предложило introducing margin requirements for large users to neutralise the risk of insolvency of the platform. Of 1.1 million votes in favour, against 30,000, more than 1 million came from a single user. Without its participation, the quorum would have been unattainable.

In the U.S. Senate presented the full version of a bipartisan bill regulating the crypto industry. Among its provisions is the requirement for legal registration of DAOs.

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