Let's talk about a tough topic: Why do so many DeFi projects end up failing?
Don't just focus on TVL numbers and hype. What truly determines the fate of a project is whether its governance mechanism actually works.
So what does governance look like for most DeFi projects right now? Token holders vote on-chain, and it seems democratic. But in reality? After the vote, the protocol keeps making money the same way, liquidity comes and goes as it pleases, and your vote doesn't really affect anything substantial.
That's why Katana's vKAT governance system is worth paying attention to. It aims to solve this exact pain point—making governance votes actually influence the protocol's real revenue and capital flows, instead of being just for show.
Giving votes real power sounds simple, but it's actually really hard to implement.
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DustCollector
· 14h ago
Well said, most DeFi projects have governance just for show, and voting is basically meaningless.
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NotGonnaMakeIt
· 23h ago
To put it bluntly, most projects are just putting on a show; governance voting is basically a formality. No wonder they keep failing one after another.
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BearMarketSurvivor
· 23h ago
It’s the same old governance routine. They keep talking about democratic voting every day, but in the end, it’s still the core team that makes all the decisions. What a joke.
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PretendingToReadDocs
· 23h ago
How many times have we said that governance should have real power? Most projects are just for show... voting rights are just a decoration.
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FunGibleTom
· 12-04 15:00
A typical case of fake democracy in Web3: voting is just for show, the real power has long been locked in by the devs.
Let's talk about a tough topic: Why do so many DeFi projects end up failing?
Don't just focus on TVL numbers and hype. What truly determines the fate of a project is whether its governance mechanism actually works.
So what does governance look like for most DeFi projects right now? Token holders vote on-chain, and it seems democratic. But in reality? After the vote, the protocol keeps making money the same way, liquidity comes and goes as it pleases, and your vote doesn't really affect anything substantial.
That's why Katana's vKAT governance system is worth paying attention to. It aims to solve this exact pain point—making governance votes actually influence the protocol's real revenue and capital flows, instead of being just for show.
Giving votes real power sounds simple, but it's actually really hard to implement.