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defi

Quorum

The minimum level of participation (measured in votes or voting power) required for a governance vote to be considered valid. Quorum prevents small groups of token holders from passing proposals when the broader community is not paying attention. For example, if a DAO requires a 4% quorum and the total token supply is 1 billion, at least 40 million tokens must participate in the vote for the result to be binding. Setting the right quorum is a governance design challenge — too high and proposals never pass, too low and the protocol becomes vulnerable to minority capture.

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