ECB Paper Questions Whether DeFi DAOs Are Truly Decentralized

• An ECB paper found that the top 100 holders control over 80% of the supply in four DeFi protocols.
• The study examined Aave, MakerDAO, Ampleforth, and Uniswap using holdings data.
• Delegates held most voting power in key governance decisions across the protocols.

A new European Central Bank working paper is challenging one of DeFi’s core claims. The study says governance in four major protocols remains heavily concentrated, even when tokens are spread across tens of thousands of addresses. That finding puts fresh focus on who actually controls decentralized finance and how regulators may classify those systems under Europe’s crypto rules.

Aave, MakerDAO, Ampleforth, and Uniswap were the subjects of the paper. The top 100 token holders had over 80% of the supply in every protocol. The paper also found that many of these holdings may be controlled by exchanges or p…

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