DAOs have evolved from simple token voting to sophisticated governance systems addressing participation, security, and legitimacy challenges across DeFi.
Delegation Revolution
Delegation scales participation by allowing passive holders to transfer voting power to active participants. Professional delegation services accumulate expertise across protocols. Some protocols now incentivize delegation explicitly.
Multi-Layer Governance
Optimism’s bicameral structure separates token voting from public goods funding. MakerDAO’s SubDAOs enable specialization. Security councils handle time-sensitive decisions under DAO oversight.
Voting Innovation
Quadratic voting reduces plutocratic influence. Conviction voting favors persistent preference. Shielded voting prevents herding. Each mechanism addresses different governance challenges.
Understanding governance trends is increasingly essential—not just for influence, but for evaluating protocol viability.