Token Holder Empowerment

Definition ∞ Token holder empowerment refers to the degree to which individuals holding a protocol’s native tokens possess influence and decision-making authority over its operations and future direction. This is typically achieved through on-chain governance mechanisms, where token holders can vote on proposals, elect delegates, or suggest changes to the protocol’s parameters. It represents a core tenet of decentralization, distributing control away from a centralized entity to the community. This power allows participants to shape the ecosystem.
Context ∞ Debates in crypto news often focus on the actual versus theoretical power of token holders, addressing issues like voter apathy, whale dominance, and the effectiveness of various governance models. Efforts to increase participation and equitable influence are ongoing discussions.