European Central Bank paper questions the decentralization level of DeFi governance tokens

Golden Finance reported that on March 27, a paper from European Central Bank staff pointed out that DeFi protocol governance tokens are highly centralized. Aave, MakerDAO, Ampleforth, and Uniswap’s governance tokens have about half or more of their holdings related to the protocol itself or exchanges. The main voting participants are mostly delegated representatives, and in many cases, these representatives cannot be identified or associated with token holders. The study questions whether DeFiDAOs are sufficiently decentralized to be excluded from the MiCA regulatory framework and provides regulatory references for policymakers.