List of Flash News about DAO governance risks
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2025-06-07 17:09 |
Decentralized Governance Risks: Off-Chain Voting Transparency Threatens Crypto Ecosystem Integrity
According to @evan_van_ness, integrating off-chain voting processes—which cannot be independently validated—into on-chain governance undermines years of progress towards decentralized, transparent, and trustless systems. The lack of verifiable transparency before proposals reach the blockchain introduces significant risks, potentially eroding trust in DeFi protocols and DAO decision-making processes. This issue is critical for traders, as it could impact token valuations and governance token pricing by increasing uncertainty around project legitimacy and community influence (source: @evan_van_ness on Twitter, June 2024). |