Maintaining decentralization: Are custody services a threat to DeFi protocols

Mike Nonaka was featured in a Cointelegraph article discussing DeFi ecosystems and decentralization in the cryptocurrency space.

According to Mike, "DeFi protocol can be decentralized even if the voting power is concentrated in a small number of token holders, adding:

Problems arise if a large token holder is able to wield enough influence to alter the trajectory of the DeFi protocol to reflect the holder's objectives, rather than the objectives identified by the protocol to spur interest in the token and protocol.

Mike noted that in such a scenario, other holders may sell their tokens over the belief that they no longer represent the value of the protocol’s founder or tokenholders.

Click here to read the full article.