Voting power in the hands of a few!
A recent paper by the ECB to show that decentralized finance is not as decentralized as many would think, gives the powers that be a big reason in their POV to put a ban on it. Those are the institutions that influence the policy makers to tackle crypto as whole and unless the crypto industry doesn’t change it internally, those institutions might win that battle.
“For instance, 80% of the total supply in circulation of Uniswap’s governance token UNI is held by the team, early investors and token holders with balances of over 1 million UNI. Further, 1% of the total token holder addresses hold around 97% of the total token supply.”
“DeFi protocols/code must be deployed, governed and upgraded, requiring human interaction. As a consequence, holders of governance tokens, decentralised autonomous organisation and platform developers could be brought into the regulatory perimeter.”
While I’m not totally against regularisation, we, the crypto-community, should not give them a reason to over-regulate where once again we lose the power of self-governance, even though in the case if Uniswap, one might ask to what extent small retail investors actually matter in their governance system.
At the very least, people should be made aware and maybe actually boycott those that play the decentralised cards, while it’s clear that they shouldn’t.
It’s not because you’re allowed to vote that you live in a democracy!
