# kaal:claim:4529715-040

**Claim.** When only a minority of members, such as Audius node operators, can stake or earn weighted votes, the majority of token holders occupy the same powerless position as an ordinary shareholder in a corporation.

**Type.** failure  **Support.** argued

**Holds when.**

- tiered voting where staking is restricted to node operators

**Source quote.**

> The downside of their structure is that only a minority of users are able to use staking or weighted tokens for voting. Thus, a majority of token holders remain in the same position as any general shareholder of a corporation relative to their power.

**From.** Wulf A. Kaal, Josh Bykowski, *Decentralized Autonomous Organizations (DAO) – A Market Meta Analysis* (2023), Appendix, Media DAOs, Audius, page 151

**Cite as.** Wulf A. Kaal, Josh Bykowski, Decentralized Autonomous Organizations (DAO) – A Market Meta Analysis (2023). SSRN: https://ssrn.com/abstract=4529715

**Verify.** sha256 of source PDF `2d71961e8c449afbeaf45ca4f53de8a575d45c77d6960b767d3d1d0874f296b5` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Bykowski%20-%202023%20-%20Decentralized%20Autonomous%20Organizations%20%28DAO%29%20%E2%80%93%20A%20Market%20Meta%20Analysis.pdf

**Failure mode.** tiered-voting-disenfranchisement  (family: plutocratic-capture)

**Topics.** dao, governance-design, corporate-governance

**Keywords.** dao, voting-power, tiered-membership, shareholder-comparison, audius

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