🏛️ Governance Internals
DeFi governance is how protocols make decisions without a CEO. Token holders vote on proposals that can change interest rates, add collateral types, allocate treasury funds, or upgrade smart contracts. From simple token voting (Compound, Uniswap) to sophisticated veToken systems (Curve, Balancer), governance design profoundly shapes protocol behavior and economics.
⚖️ Governance Models
🗳️
Token Voting
1 token = 1 vote. Simple but plutocratic. Used by Compound, Uniswap, Aave.
🔒
veToken Locking
Lock tokens for 1-4 years. More lock time = more voting power. Curve, Balancer, Frax.
👥
Optimistic
Proposals pass unless vetoed. Faster execution, lower participation needed. Nouns DAO.
🏛️
Council / Multisig
Elected representatives execute decisions. Faster but more centralized. Arbitrum Security Council.
● Live
On-Chain Voting
How proposals move from idea to execution — quorum, timelock, and token-weighted voting mechanics
● Live
Delegation
Vote delegation chains, power concentration, and how delegates shape protocol governance
● Live
veTokenomics
Vote-escrowed token locking — voting power decay, gauge weight battles, and boost mechanics