How to Determine if Governance Delegation is Overly Concentrated
Overly concentrated on-chain governance delegation directly weakens the voting influence of ordinary token holders. This method applies to all DAOs and public chain governance scenarios that support delegation voting.
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Prerequisites for Judgment
You need to export all voting delegation on-chain data for the target governance project over the past 30 days in advance, including three fields: delegator address, delegation weight, and delegatee address.
Specific Steps to Determine Over-Concentration
- Count the total voting weight held by the top 10 delegatee addresses and calculate its proportion of the total votable weight. If the ratio exceeds 60%, it reaches the concentration warning threshold.
- Investigate the affiliations among the top 20 delegatee addresses by weight. If three or more addresses belong to the same entity/individual and their combined weight exceeds 40%, it can be determined as overly concentrated.
- Look back at the voting distribution of the last five proposals. If over 70% of the "yes" votes come from the top 10 delegatee addresses, it confirms excessive concentration.
Common Pitfalls
Many users, when performing their calculations, fail to exclude the voting weight of locked and uncirculated tokens reserved by the project team, resulting in a proportion deviation of more than 20%.
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Compliance Risk Reminder
If governance delegation is overly concentrated, proposals with small stakes submitted by ordinary users are very likely to never enter the voting process, substantially diluting the benefits of participating in governance.
All data must be verified through the public interfaces of the corresponding block explorer. After confirming the results, users can promptly adjust their delegation targets to diversify voting weight.
