1.1 Complete loss of fairness

Although the decentralized finance (DeFi) industry has championed transparency, fairness, and autonomy since its inception, its rapid growth has also exposed multiple structural challenges. These challenges, particularly those of algorithmic stablecoin protocols like OlympusDAO and a plethora of copycat projects, have severely hampered the industry's progress. These challenges have not only severely damaged user trust but also made DeFi's vision of disrupting traditional finance increasingly unattainable.

#1 The "Pre-mine Trap" of Token Issuance

Most DeFi projects (especially OlympusDAO derivatives) use pre-mines and private placements during their launch phase, allowing market makers, institutions, or project owners to acquire large quantities of tokens at minimal (or even zero) cost, creating an initial monopoly on tokens. For example, in some copycat projects, 80% of the tokens are held by the core team and early investors. After launch, they pump the market to attract retail investors, then sell off at a high price to reap the rewards. This "unfair launch" deviates from DeFi's original goal of "equality for all" and turns the market into a "cash machine for market makers."

Token distribution black box and governance oligopoly：

Token distribution black box and governance oligopoly
disease	empirical data	essential attribution
pre-digging trap	A leading algorithm stablecoin project (2023) accounts for 42% private placement, 15% pre-mining, and the team holds 23%.	< b0 > Token issuance rights centralization The project party has absolute control over the initial allocation
Governance of theatricalization	OlympusDAO Governance Proposal Pass Rate: Whale Proposal 92% vs Community Proposal < 8%	< b0 > Weight algorithm flaws 1 token = 1 vote to make capital = has the voice over

#2 Governance is controlled by giant whales

Under the slogan "code is law", governance is actually determined by the number of tokens held. By monopolizing the distribution of tokens (e.g. holding more than 90% of the circulation), the giant whale has the voice over the voting, and the proposals of ordinary users are useless. In OlympusDAO V3, OHM holders (mostly large holders) dominate governance, and the participation of ordinary users is less than 5%. This phenomenon makes the so-called "decentralized governance" reduced to "the game of the plutocrats", and the true democratic vision is suppressed by capital.