According to ChainCatcher, a new analysis by the Cambridge Center for Alternative Finance shows that the level of concentration of DAO governance power behind DeFi protocols is comparable to that of the most unequal countries in the world.
Through Gini coefficient analysis, the Gini coefficients of the top ten DAOs are as high as 0.97 to 0.99, indicating a high concentration of power. In comparison, South Africa’s Gini coefficient is 0.63.
The analysis revealed that despite DAO’s claims of decentralization, most decisions were still dominated by a small number of large token holders. The Cambridge team said it would further refine the data and analyze the concentration of power in DAO in the future.