Token Holder Voting

Definition ∞ Token holder voting is a governance mechanism in decentralized autonomous organizations (DAOs) and blockchain protocols where individuals holding a specific cryptocurrency token can cast votes on proposed changes or decisions. The weight of each vote is typically proportional to the number of tokens held. This system enables community participation in the direction and development of a project. It is a core aspect of decentralized governance.
Context ∞ The practice of token holder voting is under continuous scrutiny regarding its fairness, voter turnout, and susceptibility to whale influence. Discussions often involve exploring alternative voting mechanisms, such as quadratic voting or delegated voting, to improve decentralization and representation. The aim is to refine governance models for more equitable and effective collective decision-making.