Definition ∞ Social choice concerns the method by which individual preferences combine to form a collective group decision. This concept from economics and political science examines how diverse individual opinions or votes are aggregated into a singular collective outcome. In decentralized autonomous organizations, it pertains to how token holders’ votes on proposals translate into protocol changes or resource allocations. The fairness and efficiency of these aggregation mechanisms are critical for decentralized governance.
Context ∞ Social choice theory underpins many discussions around decentralized governance in crypto news, particularly concerning the design and effectiveness of voting mechanisms within DAOs. Debates often address issues such as voter apathy, plutocracy, and the potential for manipulation in on-chain voting systems. Designing robust social choice mechanisms remains a key objective for enhancing the legitimacy and functionality of decentralized decision-making.
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