The "Silent Evolution" of DeFi in 2025: Why the Centralization of DAO Governance Matters

“State of DeFi 2025” report reveals a structural shift in the DeFi market. According to data jointly analyzed by DL News, DL Research, and DefiLlama, what emerged throughout 2025 was not merely a slowdown in DAO activities but a redefinition of governance participation itself.

DAO Voting Participation at Its Lowest in Recent Years

A comparative analysis of major protocols such as Aave, Uniswap, Balancer, Frax, and Arbitrum shows that proposal numbers have been reduced by 60–90% compared to the same period last year. This figure indicates not just a decrease in activity volume but signifies a major transformation in participation structures across the entire governance process.

Interestingly, not all DAOs followed the same trend. While projects like Lido increased their number of participants, overall, there is a clear trend of minority participants withdrawing. This suggests more than just waning interest in governance; it indicates a professionalization of participation structures.

Centralization of Voting Rights: From “Decentralization” to “Efficiency”

The most significant change pointed out in the report is the rapid concentration of voting rights among large holders and professional delegates. Contrary to the ideal of “decentralized governance” traditionally championed by DAOs, actual operations are increasingly driven by a smaller, more efficient decision-making minority.

The decline in small-scale participants is also related to changes in governance token reward mechanisms and increased knowledge costs required for participation. While this centralization enhances the effectiveness of DAO management, it also diverges from the original value of “decentralization.”

Accelerating Innovation in Revenue Models Across DeFi

The paradigm shift is reflected not in political governance of DAOs but in the economic layer of DeFi products. As blockchain transaction costs decrease, Ethereum transaction fees have fallen significantly over the past few years, with trading volumes on the rise.

This environment has shifted the structure so that application layers now capture most fee revenues, stimulating competition among protocols. In addition to traditional UX improvements and token value enhancement measures, models that return profits to users and token buyback programs are increasingly prominent.

Dividend and Return Models Tripled: Progress in Token “Assetization”

Throughout 2025, mechanisms that directly return earnings to token holders have tripled. This indicates not just a corporate distribution strategy but the emergence of a basis for recognizing tokens as “real assets” rather than speculative instruments.

Strengthening user return mechanisms improves the fundamentals of token holdings and begins to influence market participants’ decision-making. This transformation could serve as a key indicator of DeFi’s maturity.

Outlook for 2026: Perpetual Futures and Real Demand as Next Growth Drivers

Market analysts, including Coinbase Institutional, predict that areas such as perpetual futures, prediction markets, and stablecoin settlements will become the next trend drivers. The evolution of these segments suggests DeFi is moving beyond speculation to serve as a substantial financial infrastructure.

At the same time, redesigning DAO governance participation models is urgent. Without fundamental revisions to reward structures and lowering participation barriers, true decentralized governance cannot be achieved. 2026 should be a pivotal year for DAOs to regain active, community-led decision-making.

Conclusion: From “Silent Evolution” to the Next Stage

In 2025, DeFi and DAOs appeared to be relatively quiet, but in reality, they underwent a structural evolution. Behind the surface phenomenon of governance centralization, product maturity and economic incentive restructuring were progressing in parallel. 2026 is expected to be a stage where these quiet transformations lead to further growth based on real demand.