Unusual Changes in DAO Governance: 2025 Will Be a Turning Point Marked by "Silence" and "Evolution"

DL News and DL Research, in collaboration with DefiLlama, released the “State of DeFi 2025” report, revealing surprising realities. An investigation into major protocols such as Aave, Uniswap, Balancer, Frax, and Arbitrum showed that the number of votes and proposals in 2025 declined by 60–90% year-over-year. Looking at the numbers alone, it might suggest a stagnation in DAO activity.

The Significant Decline in Governance Participants Indicates a Meaningful Shift

However, the report points out that this is not merely a “decrease in activity.” Instead, there is a notable change in the composition of DAO participants. Small-scale participants are withdrawing one after another, and voting rights are increasingly concentrated among large holders and professional delegates. The once-ideal “decentralized governance” is retreating, shifting toward a more efficiency-oriented decision-making system.

Interestingly, there are cases like Lido where participation has increased. However, overall, the enthusiasm for DAO participation has undeniably cooled. This centralization phenomenon raises questions among market participants: Is this a healthy evolution of DeFi, or a warning sign?

The Maturity of DeFi Behind the Surface Silence

On the other hand, evaluating DeFi as a whole in 2025 is a different matter. The report describes this year as “a year of victory in another sense.” The reason lies in the sharp decrease in blockchain utilization costs.

Ethereum transaction fees have been significantly reduced over the past few years, leading to an increase in transaction volume. This change has transformed the application layer to derive most of its revenue from fees. Competition among protocols has intensified, leading to new developments beyond traditional UX improvements and token value enhancement efforts.

Token Holders See Threefold Increase in Benefits and Returns

A notable change is the threefold increase in dividend and return models in 2025. Initiatives such as token buybacks and revenue sharing with users have become more common, leading to tokens being recognized less as speculative tools and more as “assets.”

Major Trends for 2026: Infrastructure Development

According to Coinbase Institutional, the DeFi trends in 2026 are expected to focus on areas such as perpetual futures, prediction markets, and stablecoin payments. This indicates that DeFi is moving beyond speculation toward becoming a full-fledged financial infrastructure.

Challenges and Countermeasures Facing DAOs

On the other hand, challenges faced by DAOs have also come to light. Issues such as lack of governance participation incentives, withdrawal of small participants, and high participation barriers are piling up. To realize true decentralized governance in 2026, fundamental redesign of reward systems and lowering participation hurdles will be urgent priorities.

Summary: Coexistence of Silence and Maturity

The environment of DAO and DeFi in 2025 can be seen as a year of “superficial silence” due to cooling governance enthusiasm, while simultaneously undergoing “deep evolution” through product maturity and economic incentive restructuring. This contradictory phenomenon is significant because it indicates that DeFi is transitioning from merely a technology to addressing real financial needs. The year 2026 will likely be a critical period to see whether these evolutions lead to further substantial growth.