# Concentration in Governance Control Across Decentralised Finance Protocols

arXiv: https://arxiv.org/abs/2501.13377 · HTML: https://mlsanity.com/paper/2501.13377/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 23 Jan 2025.

## Built on by (most cited first, 1 of 1)

- [DAO-enabled decentralized physical AI: A new paradigm for human-machine collaboration](https://mlsanity.com/paper/2605.04522/) (2026)

## Abstract (arXiv)

Blockchain-based systems are frequently governed through tokens that grant their holders voting rights over core protocol functions and funds. The centralisation occurring in Decentralised Finance (DeFi) protocols' token-based voting systems is typically analysed by examining token holdings' distribution across addresses. In this paper, we expand this perspective by exploring shared token holdings of addresses across multiple DeFi protocols. We construct a Statistically Validated Network (SVN) based on shared governance token holdings among addresses. Using the links within the SVN, we identify influential addresses that shape these connections and we conduct a post-hoc analysis to examine their characteristics and behaviour. Our findings reveal persistent influential links over time, predominantly involving addresses associated with institutional investors who maintain significant token supplies across the sampled protocols. Finally, we observe that token holding patterns and concentrations tend to shift in response to speculative market cycles.