11.7 Governance & Decision-Making Risks

Decentralized governance introduces the risk of voter apathy, concentration of power among large stakeholders, or manipulation of outcomes.

Mitigation Strategy:

• Quorum Requirements: Governance actions at both the protocol and SPV levels require a minimum percentage of participation to be valid.

• Reputation-Based Voting: Future updates may include non-transferable reputation points that weigh votes by historical contribution and engagement.

• Delegate Voting: Token holders can delegate their votes to trusted representatives, ensuring that governance remains active and informed.