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🗳️ Governance & DAOs

Metagovernance

Using one protocol's position to influence another protocol's governance

Definition

Metagovernance means using one protocol's position to influence another protocol's governance. In DeFi, the concept matters because it affects risk, return, liquidity, governance, or execution assumptions.

Metagovernance is a DeFi term used to understand using one protocol's position to influence another protocol's governance.

Example

Convex controls significant veCRV voting influence, so CVX governance can shape Curve gauge emissions.

1

How it works

In practice, the concept shows up like this: Convex controls significant veCRV voting influence, so CVX governance can shape Curve gauge emissions.

2

Why it matters

Metagovernance matters because small misunderstandings can turn into bad pricing, liquidation, governance, custody, or smart-contract risk.

3

What to check

Check who has voting power, what can be changed, and whether minority users can exit. The main checks are: Governance capture; Opaque incentives; Concentrated influence.

Risks to Consider

  • Governance capture
  • Opaque incentives
  • Concentrated influence

Common Questions

What does Metagovernance mean in DeFi?

Metagovernance means using one protocol's position to influence another protocol's governance.

How is Metagovernance used in practice?

A practical example: Convex controls significant veCRV voting influence, so CVX governance can shape Curve gauge emissions.

What should I check before relying on Metagovernance?

Check who has voting power, what can be changed, and whether minority users can exit. The main checks are: Governance capture; Opaque incentives; Concentrated influence.