Majority Consensus Models

Majority consensus models are governance structures that require a simple or supermajority of votes to approve a proposal. This is the most common form of decision-making in decentralized systems, providing a clear and straightforward path to action.

A simple majority requires more than 50 percent of the votes, while a supermajority, often used for critical changes, may require 66 percent or more. These models ensure that decisions are based on the collective preference of the participants, preventing any single entity from unilaterally changing the protocol.

However, they can be vulnerable to the "tyranny of the majority," where a large group ignores the interests of smaller stakeholders. To mitigate this, some protocols use weighted voting or require specific conditions for different types of proposals.

In the derivatives context, these models are used to set key parameters like collateral ratios and interest rates, where a clear, agreed-upon consensus is essential for the system's continued stability and trust.