Historical retrospective · DeFi

Delegation became a core design question in protocol governance

Many DeFi systems use delegated voting so token holders can assign governance power to representatives who participate in proposal decisions.

Event / milestone year: 2020First published

Delegation can improve participation when users do not follow every proposal, but it also concentrates influence among active delegates.

Governance design became a product feature with real consequences for risk parameters, upgrades and treasury decisions.

A transparent voting interface does not prove that voters represent all users or that a proposal is economically sound.

Primary source

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Compound governance documentation ↗