ECB staff question the decentralization level of DeFi DAO governance tokens, suggesting they may struggle to meet MiCA exemption standards.

Techub News, according to Cointelegraph, European Central Bank staff released a report pointing out that the governance tokens of DeFi protocols are highly centralized. Approximately half or more of the holdings of governance tokens for Aave, MakerDAO, Ampleforth, and Uniswap are related to the protocols themselves or exchanges. The main voting participants are mostly delegates, and in many cases, these delegates can neither be identified nor linked to token holders. The research questions whether DeFi DAOs have sufficient decentralization to be excluded from the MiCA regulatory framework and provides a reference for policymakers to bring relevant entities under regulation.