Section 5: Governance Safeguards

5.1 Preventing Governance Centralization

To prevent a small group of large token holders from controlling the DAO, the governance protocol includes several safeguards:

• Quadratic Voting: As mentioned above, quadratic voting reduces the disproportionate influence of large token holders on key decisions.

• Voting Power Caps: For certain votes, the DAO may implement caps on the maximum voting power any single entity or individual can exercise, ensuring more equitable representation.

5.2 Emergency Governance Protocols

In the event of a crisis or urgent matter, the DAO may invoke emergency governance protocols. These protocols enable swift decision-making by allowing for expedited voting processes. Emergency proposals must be clearly marked and justified and can only be enacted with a higher quorum (15%) and approval threshold (75%).