Stake-Weighted Voting

Definition ∞ Stake-weighted voting is a governance mechanism where a participant’s voting power is proportional to the amount of cryptocurrency they have staked or hold within a given protocol. This system grants greater influence to those with a larger economic commitment to the network. It is commonly employed in proof-of-stake blockchains and decentralized autonomous organizations (DAOs) for decision-making. This method aims to align voter incentives with the long-term health of the system.
Context ∞ The implementation of stake-weighted voting often leads to discussions about decentralization, voter participation, and the potential for plutocracy within digital asset governance. News frequently reports on significant governance proposals and their outcomes, influenced by large token holders. Future developments focus on mitigating centralization risks and exploring alternative voting mechanisms to promote broader participation and equitable decision distribution.