ECB study finds concentrated power in DeFi
Authors say all crypto services should fall under Micar, as full decentralisation does not exist
Decentralised finance (DeFi) is a misnomer, a study from the European Central Bank has found, as its governance is in fact controlled by a small number of entities.
The working paper, published on March 26, says that although governance rights in DeFi are commonly portrayed as decentralised and community-driven, they are in fact exercised by “a restricted set of actors”.
DeFi protocols are code-based smart contracts that execute transactions. Token holders have the right to vote for changes to
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