Voting Power
Governance Voting Power
Amount of influence a participant has in governance votes
Definition
Voting Power means amount of influence a participant has in governance votes. In DeFi, the concept matters because it affects risk, return, liquidity, governance, or execution assumptions.
Voting Power is a DeFi term used to understand amount of influence a participant has in governance votes.
Example
A user with 100,000 delegated UNI has more voting power than a user voting directly with 1,000 UNI.
How it works
In practice, the concept shows up like this: A user with 100,000 delegated UNI has more voting power than a user voting directly with 1,000 UNI.
Why it matters
Voting Power matters because small misunderstandings can turn into bad pricing, liquidation, governance, custody, or smart-contract risk.
What to check
Check who has voting power, what can be changed, and whether minority users can exit. The main checks are: Governance concentration; Delegate misalignment; Vote buying.
Risks to Consider
- Governance concentration
- Delegate misalignment
- Vote buying
Common Questions
What does Voting Power mean in DeFi?
Voting Power means amount of influence a participant has in governance votes.
How is Voting Power used in practice?
A practical example: A user with 100,000 delegated UNI has more voting power than a user voting directly with 1,000 UNI.
What should I check before relying on Voting Power?
Check who has voting power, what can be changed, and whether minority users can exit. The main checks are: Governance concentration; Delegate misalignment; Vote buying.