Stake-Weighted Authorization

Definition ∞ Stake-weighted authorization is a governance or access control mechanism in decentralized systems where the influence or permission granted to a participant is directly proportional to the amount of cryptocurrency they have staked. Higher staked amounts confer greater decision-making power or access rights. This system aligns participant incentives with network security. It allows for decentralized decision-making based on committed capital.
Context ∞ Proof-of-Stake blockchains and decentralized autonomous organizations frequently use stake-weighted authorization to decentralize control over network parameters or treasury management. However, concerns about the potential for centralization of power among large token holders persist. This balance between decentralization and efficiency is a continuous debate.