>"This governance mechanism has been around for a long time, has a long history in our political system, and has a relatively simple user experience.
On the other hand, there are some problems with voting based purely on tokens. Plutocracy is not good, and choosing the “right” quorum requirement is difficult. A low quorum allows proposals to pass easily and the system is vulnerable to attacks. But a quorum that is too high makes it difficult to pass. The challenge is even greater when it comes to whales (holders of large amounts of tokens). Token-based voting is sensitive to certain types of attacks (such as the flash governance attack we saw in Maker). Quorum-based voting also requires significant member participation to pass proposals, which is both expensive and time-consuming.
"