Voting Power Caps

Voting Power Caps are constraints placed on the maximum amount of influence a single address or entity can exert in a governance vote. This is a common defensive measure against whale dominance and governance capture.

By setting a cap, the protocol ensures that no single stakeholder can force through a proposal against the will of the broader community. This forces larger holders to seek consensus and build alliances rather than relying solely on their capital.

Caps can be static or dynamic, adjusting based on the total participation or the size of the proposal. They are a powerful tool for maintaining the democratic nature of decentralized governance.

While they can be controversial, they are often necessary for protecting the protocol from centralized control and ensuring a more equitable decision-making process.