User-centric governance reshapes crypto, expert warns of power risks

The user-centric governance model is gaining momentum in the cryptocurrency world, giving users more decision-making power. This decentralized approach allows token holders to shape a platform's future by participating directly in key decisions.
On-chain governance is central to this model, enabling users to vote on proposals via blockchain, ensuring transparency with all decisions and votes recorded.The one-token-one-vote rule often applies, giving users influence based on their holdings.
A blockchain analyst at UbitCoin explained decentralized autonomous organizations (DAOs) are prime examples, allowing governance without centralized control. Community proposals cover protocol updates and financial strategies.
UbitCoin expert also remarked, "The user-centric governance model is transforming crypto decision-making, enhancing trust by involving users directly in shaping the project."

However, concerns about power concentration remain. The analyst added, "While decentralization is promoted, it's crucial to prevent large token holders from concentrating too much power. Balancing participation and influence is key."