Transaction Voting

Definition ∞ Transaction voting is a mechanism within certain blockchain networks or decentralized autonomous organizations (DAOs) where network participants or token holders cast votes to approve or reject proposed transactions or protocol changes. This method confers governance power directly to the community, influencing the network’s operational parameters or specific asset movements. It underpins decentralized decision-making.
Context ∞ Transaction voting is a core component of decentralized governance models, particularly in DeFi protocols, where it allows community members to direct protocol upgrades or resource allocation. News often highlights important governance proposals and their outcomes, showcasing the active participation of token holders. A key debate involves ensuring equitable voting power distribution and preventing voter apathy or malicious coordination.