What governance models are used in DeFi exchanges?
Decentralized exchanges often adopt token-based governance models that allow stakeholders to vote on protocol upgrades, fee structures, and risk parameters. Governance may be on-chain, where votes directly execute smart contract changes, or off-chain with multisig execution. Technical challenges include voter apathy, governance attacks, and upgrade coordination. Some protocols implement delegated voting or time-locked proposals to balance efficiency and decentralization. Well-designed governance ensures protocol adaptability while maintaining community trust.
Explore More: https://www.blockchainappfactory.com/decentralized-exchange-development
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