Ownership Limits

Definition ∞ Ownership limits refer to predetermined restrictions on the maximum amount of a particular digital asset or token that a single entity, address, or individual is permitted to hold. These limits are often implemented within decentralized autonomous organizations, token distributions, or regulated digital securities to prevent excessive concentration of power or influence. The objective is to promote decentralization, reduce market manipulation risks, and ensure a broader distribution of governance rights. Such controls aim to maintain network integrity and fairness.
Context ∞ News often reports on discussions and implementations of ownership limits within new blockchain projects or regulatory frameworks for digital assets. Debates frequently arise regarding the effectiveness of such limits in preventing centralization and their impact on market liquidity. The presence or absence of ownership limits is a key factor in evaluating the decentralization claims and regulatory compliance of various digital asset initiatives.